Producer prices, Applied Materials, Constellation Energy: 3 things to watch

By Liz Moyer

Investing.com -- Stocks rose on Wednesday after stronger-than-expected retail sales that initially raised fears about interest rates.

The Federal Reserve has been eyeing data on inflation and jobs to help decide its next step on rates, with the market in agreement that it will raise the benchmark rate another quarter of a percentage point when it meets next month. Markets also expect another same-sized increase at the May meeting.

The longer term is harder to read. The Fed wants to tame inflation but wants to avoid a hard landing, which would involve a high number of jobs lost. The tech industry has begun laying off thousands of workers but that cost-cutting hasn't been reflected in the jobs numbers yet. The next reading, for February, is more than a week away.

Until then, the market will see the weekly jobless claims numbers every Thursday to gauge the health of the labor market. Earnings reports from major retailers from the holiday quarter are also set to pour in next week, and that could give investors something to think about when it comes to the health of the American consumer.

Here are three things that could affect markets tomorrow:

1. Producer prices

The producer price index for January comes out at 8:30 ET (13:30 GMT). Analysts expect the monthly number to rise 0.4% and the yearly reading to rise 5.4%. Core PPI, which removed food and fuel, is expected to rise 0.3% for the month and 4.9% for the year.

2. Applied Materials 

Applied Materials Inc (NASDAQ:AMAT) is expected to report earnings of $1.93 on revenue of $6.69 billion.

3. Constellation Energy

Constellation Energy Corp (NASDAQ:CEG) is expected to report earnings of 37 cents on revenue of $3.6B.