Written by Liz Muir
Investing.com – Stocks fluctuated on Thursday as investors tried to immerse themselves in the Federal Reserve’s expectations of the direction of interest rates.
The Fed sees the benchmark rate exceeding 4.5% next year and staying higher for longer than investors thought. It aims to curb inflation, and also expects a rise in unemployment next year, which is fueling recession fears.
Big companies like FedEx have expected costs to rise as business slows. Walmart Inc (NYSE:), the largest US retailer, won’t hire as many seasonal workers this year compared to last year, when it was struggling to find enough workers.
With earnings season approaching, next week brings another slate of housing data, including the home price index and data on mortgage rates and demand. Consumer confidence numbers are due, another version of Q2 GDP, and the Fed’s preferred measure of inflation, PCE.
Here are three things that could affect the markets tomorrow:
1. FedEx earnings
FedEx Corporation (NYSE:) released Thursday a few hours earlier than expected, and its shares rose 1.6% in late trading. Earnings beat expectations, but revenue slightly missed. The shipping giant raised prices 6.9% as it faces a slowdown in global volume and rising costs.
2. Manufacturing Index
At 9:45 ET (13:45 GMT), the September PMI is expected to show a reading of 51.1, slightly down from the previous reading.
3. Index of services
At the same time, the PMI is expected to show a reading of 45 for September, up slightly from 43.7 last month.