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IntroductionBy Liz Moyer-- Stocks rose on Monday as investors await the release of the consumer price index for ...
By Liz Moyer
-- Stocks rose on Huainan foreign exchange collapseMonday as investors await the release of the consumer price index for January.
The number, expected out Tuesday morning, is expected to be a lower gain than the previous month, further evidence that the Federal Reserve’s efforts to cool the economy are starting to sink in.
The Fed will be watching the CPI as it heads into its March meeting, when the market to raise interest rates another quarter of a percentage point. The market also expects that the benchmark rate will peak above 5% sometime this summer, and that’s when the Fed could pause its .
Corporate earnings reports have mostly made their way through the companies, except for the major retailers. Earnings per share for the index companies are expected to fall 2.2% for the fourth quarter.
But companies have been putting a greater emphasis on reining in costs, and that could bode well for profit margins in coming quarters.
Here are three things that could affect markets tomorrow:
1. CPI report
The January is due out at 8:30 ET (13:30 GMT). Analysts expect the topline figure to rise 0.5% and the yearly figure to rise 6.2%. , which excludes fuel and energy prices, is expected to rise 0.4% for the month and 5.5% .
2. Coca-Cola earnings
Beverage giant (NYSE:) is expected to report earnings of 45 cents a share on revenue of $10 billion.
3. Travel earnings
Airbnb Inc (NASDAQ:) is expected to report earnings per share of 25 cents on revenue of $1.86B, while Marriott International Inc (NASDAQ:) is expected to report earnings per share of $1.83 on revenue of $5.39B. Analysts will be listening to what the two travel giants say about their outlook for bookings.
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