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Investing.com — Stocks extended their fall late into the trading session on Thursday, as fears about the Federal Reserve’s next rate moves erased earlier optimism about strong corporate earnings.
Investors have been hoping for signs that the Fed’s aggressive interest rate increases to tame inflation would come to an end in the near future, but comments this week by Fed officials indicate they believe rates will have to continue to go up and, according to some, stay at elevated levels for longer.
Markets are mostly in agreement that the Fed will raise by another quarter percentage point in March, and some are betting on a similar increase in May.
Next week’s consumer price index report, plus the report on retail sales for January, could influence Fed thinking on what the next move should be. After that come earnings reports from major retailers, who should be able to shed light on how consumer spending is trending.
Here are three things that could affect markets tomorrow:
1. Michigan consumer sentiment
The preliminary reading for February consumer sentiment is due out from the University of Michigan at 10:00 ET (15:00 GMT). Analysts are expecting it to tick up to 65 from 64.9 in the prior reading.
2. Newell Brands earnings
The maker of Sharpie markers and Rubbermaid, Newell Brands Inc (NASDAQ:NWL) is expected to report earnings of 11 cents a share on revenue of $2.2 billion. The company recently announced a plan to lay off 13% of its office staff.
3. Rig counts
The Baker Hughes oil rig count is due out at 13:00 ET, amid calls from the Biden administration for the oil industry to raise production so the price of gas can fall. The last time around, Baker Hughes reported 599.
