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The most important events for the stock market Wednesday will come after the closewhen Microsoft and Tesla will report earnings.

Tesla stock is up 275% year to date, and its now the worlds most valuable car company, worth almost $300 billion. Microsoft is up a paltry 32%, but after adding $380 billion in market cap, its now worth $1.5 trillion, making it the second most valuable company in the U.S., trailing only Apple.

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A morning briefing on what you need to knowin the day ahead, including exclusive commentary fromBarron's and MarketWatch writers.

Expectations are high. Officially, Tesla is expected to post a small second-quarter loss, but that estimate appears stale. Teslas second-quarter deliveries crushed forecasts, and analysts have been slow to adjust their numbers. The so-called whisper number could be closer to 50 cents in per share profit. The stakes are high: If Tesla produces a quarterly profit, its stock could be added to the S&P 500.

Microsoft is expected to earn $1.36 a share and, like Tesla, it will have to do better than the official numbers to meet heightened expectations. The company has topped earnings estimates for 16 straight quarters. The last time Microsoft missed estimates the stock dropped 7.2%. There will be less drama at Microsoft, but earnings still matter.

Come to think of it, earnings always matter.

Al Root

The U.S. State Department ordered Chinas foreign ministry to close its Houston consulate Wednesday.

Whats Next: The U.S. governments approach toward China could continue through November as President Donald Trump and Secretary of State Mike Pompeo have blamed China for the coronavirus outbreak. Retaliation by China could inject more uncertainty into already-shaken markets.

Archie Mitchell

The U.S. Department of Justice says two men who worked for Chinas intelligence service gained unauthorized access to computers around the world and stole terabytes of data, targeting everything from gaming software development to Covid-19 research.

Whats Next: Li and Dong are unlikely to face trial over the charges because China doesnt have an extradition treaty with the U.S. But the indictment serves to raise awareness of the financial and intellectual property threat posed by such hacksand deter others who might lack the same protections.

Anita Hamilton

President Trump held his first coronavirus briefing since April on Tuesday, during which he told reporters at the White House that the Covid-19 pandemic would probably get worse before it gets better.

Whats Next: Trumps briefing also comes as he trails in polls to former Vice President Joe Biden. Given the spike in cases paired with polling that shows many Americans dont approve of how he has handled the pandemic, the president might look to such briefings as a way to win over the American public.

Connor Smith

Former Vice President Joe Biden laid out his latest economic proposal, a plan for child and elder care, on Tuesday. The presumptive Democratic presidential nominee called for $775 billion to be spent over the next 10 years on tax credits for early childhood care, universal prekindergarten for 3- and 4-year-olds, and increased spending on in-home care for the elderly and disabled.

We cant just build back to the way things were before ...This is about dignity and respect for working people. Joe Biden

Whats Next: Even if Biden is elected and Democrats win a majority in the Senate in November, Republicans would likely still have enough votes to use a filibuster to block Bidens proposals. To push any plans through, Biden would either have to work with Republicans or convince the Senate to eliminate the filibuster entirely.

Ben Walsh

A fourth Covid-19 rescue package wont pass until early August, House Minority Leader Kevin McCarthy (R., Calif.) and Senate Majority Leader Mitch McConnell (R., Ky.) said Tuesday. The extra unemployment benefits that more than 30 million workers are receiving would expire before a deal to extend or modify them can be struck.

Whats Next: Senate Republicans, still trying to navigate fissures in their own caucus and with the White House, have yet to present their proposal. Without that, the one thing that needs to happen for a bill to passnegotiationscant begin in earnest.

Ben Walsh

Dear Moneyist,

My dad passed away from Covid-19 in early April, 2020. He was a first responder at a walk-in clinic, and was in great health with no underlying health conditions. His death is still a shock to me as he and I were very close.

Me, my sister, our stepmother of five years, and her son are left behind. He did not leave a will. It has been over two months, and we have now just received financial information regarding our dads estate.

My stepmother hired a lawyer who wants us to sign papers to say she gets everything (money, house and car) and my sister and I basically get nothing (just enough to cover one semester of college).

She originally agreed to split everything evenly, and now she is denying any mention of that. She claims she wants all of this to be fair and the court system is fair when she knows none of this is respectable.

She said if we dont sign our rights over, she will put everything through probate, including memorable items like family heirlooms, clothes, pictures or anything she possibly could. What should our next move be?

Feeling Trapped

Read The Moneyists response.

Quentin Fottrell

Newsletter edited by Stacy Ozol, Anita Hamilton, Matt Bemer, Benjamin Levisohn

Original post:

Tesla and Microsoft Earnings Will Move the Market - Barron's