Pfizer Again, Macy's, GlobalFoundries: 3 Things to Watch By

© Reuters.

By Dhirendra Tripathi

-- The S&P 500 and NASDAQ Composite edged higher on Thursday and appeared on track to set new records with a half hour of trading left.

Big tech notched gains, lifted by chip makers such as NVIDIA Corporation (NASDAQ:NVDA), which roared to new highs after strong earnings and a positive outlook.

Broad gains in chip-making stocks boosted the Philadelphia semiconductor index itself to a record high. And ongoing strong earnings by retailers such asMacy’s Inc (NYSE:M) and Kohls Corp (NYSE:KSS) also supported the index gains. 

Still, inflationary pressures remained a worry, and investors were still skittish about how the Federal Reserve might act to reverse rising prices. On a positive front, the number of Americans filing for unemployment benefits fell again last week, but the pace of the decline didn’t match expectations.

Before President Joe Biden leaves for his Thanksgiving break, there are still a number of unresolved matters in Washington. House lawmakers were expected to bring his $1.85 trillion social spending package to a vote by the end of this week. And leadership from both parties are meeting to negotiate a solution to the debt ceiling, which must be raised by early December.

Biden also has to pardon the Thanksgiving turkeys.

Here are three things that could affect markets tomorrow:

1. Pfizer still in the headlines

Pfizer Inc (NYSE:PFE)continues to draw the spotlight -- as we await public health officials’ decision on providing boosters for all adults. The U.S. government will pay it $5.29 billion to buy 10 million treatment courses of its experimental drug for treating Covid-19.

The Food and Drug Administration has yet to approve the pill, and the supplies, to be completed by 2022, will start once that is in. The company said it has also entered into advance purchase agreements with several other countries and has initiated bilateral outreach to approximately 100 nations around the world.

2. Macy’s earnings

Macy’s Sales and earnings both blew past estimates and the retailer raised its guidance for the full year once more, after attracting 4.4 million new customers through the three months ended October 30, on top of the 5 million it added in the second quarter. 

The company now expects its full-year net sales to be $24.20 billion at the midpoint of its guidance range, up from $23.75 billion previously.  Average customer spending rose 16% across three segments of its loyalty program -- platinum, gold and silver. Separately, Macy's said it will launch a curated online marketplace to cement the gains it has made in e-commerce over the last couple of years.  

3. Chip-Automaker alliance

Globalfoundries Inc (NASDAQ:GFS) made its public debut at the end of October and hit new highs Thursday after announcing a collaboration with Ford Motor Company (NYSE:F). The companies will work together to advance semiconductor manufacturing and technology development within the U.S. GlobalFoundries create an additional semiconductor supply for Ford's current vehicle lineup. 

--Sam Boughedda contributed to this report

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