By Liz Moyer
Investing.com -- Stocks went in different directions on Wednesday, starting the month off on wobbly footing as investors await the next move by the Federal Reserve.
Investors are fearing that interest rates will stay higher for longer. Fed officials have been talking in recent days about the need to continue to raise rates because their job taming inflation is not yet done.
Futures traders are betting on at least two more rate hikes -- most likely of a quarter of a percentage point each -- in March and May and for the benchmark rate to reach above 5.25% later this summer.
Hotter-than-expected economic and jobs data is giving the Fed fuel to continue to raise rates. The next big reading -- the jobs report for February -- is expected out next week. Until then, investors will see more data on initial jobless claims and more earnings from retailers, who can provide their own insights on the strength of the American economy.
Here are three things that could affect markets tomorrow:
1. Costco Wholesale
Costco Wholesale Corp (NASDAQ:COST) is expected to report earnings per share of $3.21 on revenue of $55.6 billion.
2. Kroger earnings
Grocery giant Kroger Company (NYSE:KR) is expected to report earnings per share of 89 cents on revenue of $35B.
3. Macy's reports
Department store chain Macy’s Inc (NYSE:M) is expected to report earnings per share of $1.58 on revenue of $8.2B.