Investing.com -- Stocks were heading higher in the last 30 minutes of trading on Wednesday after the release of the minutes from the Federal Reserve's meeting in September.
Most of the central bank's policymakers agreed that one more rate hikes would be appropriate, the minutes said, and repeated that they saw need to keep interest rates higher for longer to battle inflation. But that was back in mid-September. Since then, comments by some Fed officials suggest they are leaning more cautiously on further rate hikes. That's after Treasury yields rose sharply to 16-year highs in recent days.
While yields have eased lower today, a hotter than expected inflation report could change that on Thursday. Already producer prices came in stronger than expected on Wednesday. On Thursday, investors will get the September reading on consumer prices.
The Fed wants to get inflation back to its 2% annual target rate, and it is not there yet. Higher-for-longer rates could nudge it lower, but elevated bond yields are also helping to cool the economy. The futures market puts a 91% probability on the Fed holding rates steady in November, but looking one month further into the future, that prediction is cloudier.
Here are three things that could affect markets tomorrow:
1. Consumer prices
The consumer price index for September is due out at 8:30 ET (12:30 GMT). Analysts expect the headline number to rise 3.6% from last year and 0.3% for the month. Core CPI, which excludes food and fuel prices, is expected to rise 4.1% from last year and 0.3% from August.
2. Delta Air earnings
Delta Air Lines Inc (NYSE:DAL) is expected to report earnings per share of $1.97 on revenue of $14.6 billion, and investors will be listening for updates on costs and travel demand.
3. Domino's Pizza reports
The restaurant chain Domino’s Pizza Inc (NYSE:DPZ) is expected to report earnings per share of $3.31 on revenue of $1.05 billion.