August Inflation, Starbucks Day, Oracle Earnings: 3 Things to Watch

By Liz Moyer

Investing.com -- Stocks rallied ahead of Tuesday's inflation report for August, and investors are seemingly shaking off recession fears.

The inflation report comes just about a week before the Federal Reserve's next policy meeting, and many are expecting it to show that inflation has slowed from its torrid pace in June. Gasoline prices have fallen nearly 10% since last month, taking weight off households that were already crunched with rising food prices.

Analysts will be looking at not just the headline number but the core number that strips out food and fuel to see what the month-to-month trend is. The Fed has said it is not going to stop tightening conditions until it is convinced inflation has been brought back in line with its policy stance.

September is normally a weak month for stock investors, but shares have been boosted by dip buying and a more favorable economic outlook.

Here are three things that could affect markets tomorrow:

1. August inflation

The big report on the consumer price index is out at 8:30 ET (12:30 GMT). Analysts expect the top number to be 8.1%, which would be down from 8.5% in July. On a monthly basis, the outlook is for inflation to fall 0.1%, where it was flat the prior month. For core CPI, analysts expect a month-over-month reading of 0.3%, same as July.

2. Starbucks day

Starbucks Corporation (NASDAQ:SBUX) is holding an investor day at 10:30 ET on Tuesday at which the coffee retailer is expected to reveal its plans for moving forward from the pandemic, with a new CEO waiting in the wings and a burgeoning labor movement across the country.

3. Oracle earnings

Oracle's (NYSE:ORCL) earnings are another focus. The company reported EPS of $1.03 on revenue of $11.45 billion. The EPS miss was due to foreign currency, the company said. Analysts expected it to report earnings per share of $1.08 on revenue of $11.3 billion.