— Stocks wobbled on Tuesday, heading lower with less than 30 minutes left in the trading session as investors weighed stronger than expected retail sales, the escalating conflict in the Middle East, and corporate earnings reports.
Treasury yields were rising as investors took some risk off the table, with the 10-year going above 4.80%. The Federal Reserve, which has been expected to hold interest rates steady when it meets next month, will be weighing the data to help decide its next steps in monetary policy. Some Fed officials have said rising bond yields are helping the Fed do its job of cooling the economy, suggesting another rate increase can wait.Â
The futures markets are mostly in agreement on the probability of the Fed holding steady in November, but there’s a nearly 40% probability of a quarter-point increase in December.
The Fed wants to push inflation back to its 2% target and has said its work isn’t done yet, necessitating keeping rates higher for longer.
Fed Chair Jerome Powell is scheduled to appear at an event at the Economic Club of New York later this week and could provide some tiny clues as to what officials are thinking as the central bank enters its quiet period before the next policy meeting.
Here are three things that could affect markets tomorrow:
1. Morgan Stanley earnings
Investment bank Morgan Stanley (NYSE:) is expected to report earnings per share of $1.32 on revenue of $13.25 billion, and investors will be listening to what investors say about the health of the deal pipeline heading into the last months of the year.
2. Procter & Gamble
Consumer products giant Procter & Gamble Company (NYSE:) is expected to report earnings per share of $1.72 on revenue of $21.6 billion.
3. Tesla reports
Electric vehicle maker Tesla Inc (NASDAQ:) is expected to report earnings per share of 73 cents on revenue of $24.3 billion. Fellow tech company Netflix Inc (NASDAQ:) is expected to report earnings per share of $3.49 on revenue of $8.5 billion.