Investing.com -- Stocks rose on Wednesday after evidence that inflation cooled more than expected in June stoked hopes that the Federal Reserve could get to the end of its interest rate increases sooner rather than later.
The Fed is still expected to raise interest rates another quarter of a percentage point when it meets in late July. But the June inflation numbers have futures traders debating whether it could be done with additional rate hikes after that.
Richmond Fed President Thomas Barkin said Wednesday that growth in consumer prices is still too much, which points to the Fed's desire to get inflation back to its 2% target.
The Fed will have a weaker-than-expected jobs report for June to also consider when it meets this month.
The central bank's periodic report on economic conditions in its districts said the pace of economic growth rose slightly from May, and inflation was slowing as wage increases moderated to near pre-pandemic levels. Economic activity rose though inflation expectations were "stable or lower over the next several months."
Here are three things that could affect markets tomorrow:
1. Producer prices
Another key indicator of inflation, the producer price index, is due out at 8:30 ET (12:30 GMT). Analysts expect the topline number rose 0.2% for the month and 0.4% for the year ended in June. Core prices, stripping out volatile food and fuel, are expected to rise 0.2% for the month and 2.7% for the year.
2. Delta earnings
Delta Air Lines Inc (NYSE:DAL) is expected to report earnings per share of $2.35 on revenue of $14.3 billion.
3. PepsiCo earnings
Beverage and snack maker PepsiCo Inc (NASDAQ:PEP) is expected to report earnings per share of $1.96 on revenue of $21.7B.