By Dhirendra Tripathi
Investing.com -- Investors stayed on the sidelines Wednesday as they have for the last few sessions, awaiting key inflation data that is scheduled for release Thursday.
Already there are signs investors are buying into the Federal Reserve’s view that any inflation as the economy reopens is merely transitory. Bond yields dipped, supporting the tech trade but dinging financials.
The short-covering in Treasuries comes just a day ahead of the consumer inflation data, with economists expecting to see the fastest annual pace since 2008.
The dip in rates helped tech find its footing, attracting bids from investors who had ditched the sector when fears on valuation ran deep.
Here are three things that could affect markets tomorrow:
1. Consumer price data
Economists expect inflation in the U.S., as measured by the Consumer Price Index, to rise 4.7% from a year earlier. It rose 4.2% in April, the fastest rise since 2008. The data are released at 8:30 AM ET (1230 GMT).
2. Jobless claims
The number of Americans filing new claims for unemployment benefits in the week ending June 5 is seen dropping by 15,000 to 370,000 from 385,000 in the week ending May 29 in a further sign of economic reopening. This report is also out at 8:30 AM.
Continuing jobless claims by individuals qualifying for unemployment insurance in the U.S. for the week ending June 5 are seen falling by 169,000 to 3.602 million from 3.771 million at the end of May 29.
3. Meme earnings
Meme stock king GameStop Corp (NYSE:GME) is seen reporting a first quarter per-share loss of 67 cents on revenue of $1.13 billion after today’s closing bell.