© Reuters
Written by Liz Muir
Investing.com – Stocks were mixed on Tuesday, with the index lower, as investors await tomorrow’s report on consumer prices for March.
Inflation is expected to moderate compared to the previous month and from the same month last year, although core prices, which exclude food and fuel, are expected to increase slightly compared to March 2022.
The report is likely to be one of the Fed’s central data inputs as it tries to determine the next move on interest rates. Last week’s data showed a drop in job openings and a rise in jobless claims, which is evidence that the tight labor market may be easing somewhat. But Friday’s March jobs report lived up to expectations, leaving futures traders to speculate that the Fed will continue to raise interest rates rather than pause in May.
There appears to be a difference of opinion among Fed officials. New York Federal Reserve Chairman John Williams said on Tuesday that there is still more work to be done to bring down rates, echoes of some of his colleagues.
But Chicago Fed President Austin Goolsby has spoken of “patience” as they look at the impact of tougher credit conditions in the banking system after the collapse of two banks in March.
For now, futures traders are factoring in a quarter-percentage-point increase in interest rates in May.
Here are three things that could affect the markets tomorrow:
1. Bed Bath and Beyond (NASDAQ:)
Troubled retailer Bed Bath & Beyond is set to post a loss per share of $1.67 on revenue of $1.38 billion. The ISS shareholder advisor has recommended that BBBY investors vote on proposals for the company’s agent, saying that a planned reverse stock split could allow it to raise enough capital.
2. Consumer Price Index
The Consumer Price Index for March is due at 14:30 ET (12:30 GMT). Overall, it is expected to rise by 5.2% year-on-year in March, and 0.2% from the previous month. Core prices are expected to rise 5.6% for the year and 0.4% for the month.
3. Federal Reserve Minutes
The Fed releases its latest meeting at 21:00 KSA. Investors are hoping the text describing policymakers’ debate over rates will give them insights into what the Fed uses to make its decisions and whether it thinks it is nearing the end of tightening.
markets today
It rose with the decline of the US. Futures contracts recorded a price of $2,019 an ounce, while spot contracts recorded $2,004 an ounce.
It also rose as the index fell to its lowest level in two weeks, with Brent oil recording $85.55 a barrel, and West Texas Intermediate crude $81.83 a barrel.
Oil is awaiting oil inventory data from the US Energy Information Administration tomorrow.
