Investing.com -- Stocks surged on Wednesday amid hopes that Congress will hammer out a deal on raising the debt ceiling, allowing the U.S. to avoid the possibility of defaulting on its obligations.
Lawmakers were still busy on the details after a meeting at the White House on Tuesday, though they could reach an agreement in the next few days.
The drama has been unfolding for weeks, since the government officially hit the ceiling of $31.4 trillion in January. The Treasury has been working around the cap since then but could run out of options by early June if an agreement isn't reached.
President Joe Biden is heading off to Japan and the G-7 meeting of world leaders this weekend and said earlier today he would have a press conference on Sunday to update on the progress of the talks.
Retail earnings continue with Walmart reporting tomorrow morning. Next week, retailers reporting include Kohl's (NYSE:KSS), Costco (NASDAQ:COST) and specialty chains including Ralph Lauren (NYSE:RL) and Abercrombie & Fitch Company (NYSE:ANF).
Here are three things that could affect markets tomorrow:
1. Walmart reports
The biggest U.S. retailer Walmart Inc (NYSE:WMT) is expected to report earnings per share of $1.31 on revenue of $148.7 billion. Analysts will be listening to what it says about consumer behavior and shopping trends.
2. Alibaba earnings
E-commerce giant Alibaba Group Holdings Ltd ADR (NYSE:BABA) is expected to report earnings of $9.51 on revenue of $208.8B.
3. Applied Materials
The chip production equipment maker Applied Materials Inc (NASDAQ:AMAT) is expected to report earnings per share of $1.84 on revenue of $6.39B.