Investing.com -- Stocks struggled for direction on Monday as investors prepared for the latest inflation reading, due out later this week.
The report, focused on the Federal Reserve's preferred inflation gauge, could be an important data input as the Fed heads into its next policy meeting in July. Analysts expect the PCE to rise 4.6% in the year through May, showing inflation is steadily heading lower though still more than twice the target rate.
The Fed paused rate hikes this month but indicated it could raise rates again this year. Futures traders give a strong probability of at least one hike coming in July.
Before the Fed meets next month, it will also get the latest report on jobs. Also due this week are the latest reading on gross domestic product, plus new home sales, jobless claims, and durable goods orders.
Here are three things that could affect markets tomorrow:
1. New home sales
New home sales for May are due out at 10:00 ET (14:00 GMT). Analysts expect an annualized rate of 670,000 for the month, dipping from the prior month.
2. Walgreens earnings
Drugstore retailer Walgreens Boots Alliance Inc (NASDAQ:WBA) is expected to report earnings per share of $1.08 on revenue of $34.3 billion.
3. Jefferies earnings
The Wall Street firm Jefferies Financial Group Inc (NYSE:JEF) is expected to report earnings per share of 32 cents on revenue of $1.05B.