ConocoPhillips, Starbucks, PayPal Earnings: 3 Things to Watch

By Liz Moyer

Investing.com -- Stocks lost their upward momentum and ended up in the red on Wednesday after the Federal Reserve raised interest rates again and hinted it had more work to accomplish as it fights inflation.

The central bank said that the "committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," in determining the future pace of rate hikes. 

But Fed Chair Jerome Powell said Wednesday it was "very premature to be thinking about pausing." The Fed chief added that the "ultimate level of interest rates will be higher than previously expected [in September]." This suggests that rates could peak well above the 4.6% level seen in the Fed's September projections. 

Investors had hoped for a clear sign that the Fed would start to ease off its aggressive pace of rate hikes.

Corporate earnings continue to pour out as investors now turn to Friday's jobs report for October. Recent data on jobs show the labor market remains tight.

Here are three things that could affect markets tomorrow:

1. ConocoPhillips earnings

Oil giant ConocoPhillips (NYSE:COP) is expected to report earnings per share of $3.72 on revenue of $19.4 billion. Oil companies have reported record profit during the recent quarter despite the drop in oil prices.

2. Starbucks earnings

Coffee chain Starbucks Corporation (NASDAQ:SBUX) is expected to report earnings per share of 73 cents on revenue of $8.3 billion. Investors will be listening for signs of progress as it transitions to a new management next year.

3. PayPal earnings

Payments giant PayPal Holdings Inc (NASDAQ:PYPL) is expected to report earnings per share of 96 cents on revenue of $6.8 billion. Analysts will be listening for what it says about consumer behavior and rising rates.