Housing Starts, Johnson & Johnson, Netflix: 3 Things to Watch By

© Reuters.

By Liz Moyer

-- Stocks turned negative on Monday as earnings kicked off with big banks, and later, big tech.

What spooked investors was a report that Apple (NASDAQ:AAPL) was going to slow hiring, becoming the latest tech giant to put the breaks on as the economic outlook grows murkier.

The Federal Reserve is expected to raise rates later this month, though there is disagreement as to how much. Most now believe it will raise its benchmark rate another 0.75 percentage points -- the same as it did in June. But for at least a brief while last week, hot inflation data made people raise their expectations that the Fed could raise the rate by as much as a full 1%.

With the slightly less aggressive hike now in view, investors started Monday out on a strong footing, but things quickly turned south after the Apple news, which just served as another sign that not all was well with the economic picture.

Word that confidence by homebuilders -- a very hot segment of the markets until recently -- had crumbled in the last month didn't help things.

More housing data is due out in the coming days.

Here are three things that could affect markets tomorrow:

1. Housing starts 

Housing starts for June are due out at 8:30 AM ET on Tuesday. Analysts expect an annualized rate of 1.58 million, up slightly from the 1.55 million prior reading.

2. Johnson & Johnson

Earnings from pharmaceutical giant Johnson & Johnson (NYSE:JNJ) are also due Tuesday. Analysts expect earnings per share of $2.55 on revenue of $23.8 billion.

3. Netflix earnings

Netflix Inc (NASDAQ:NFLX), the streaming giant, is seen reporting earnings of $2.96 a share on revenue of $8.03 billion.

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