GDP reading, Booking Holdings, Moderna: 3 things to watch

By Liz Moyer

Investing.com -- Stocks wobbled on Wednesday as the minutes of the Fed's most recent meeting revealed that most policymakers wanted to slow the pace of interest rate hikes so they could read the incoming economic data.

But that meeting came days before the January jobs report stunned the market with an unexpectedly large amount of jobs added. 

Data since that blistering jobs report has also showed signs that inflation is persisting and may take the Fed some time to bring down. 

Most market watchers expect at least two more Fed rate increases this spring, a quarter percentage point hike in March and another in May, and quite possibly one in June, too. That would push rates above the 5% forecast by Fed officials last year. But how long the Fed will have to hold rates at an elevated level is another question.

Growth stocks rallied earlier this year on the hope that the Fed could soon pause its rate hikes and possibly even pivot. But getting to that point may take some time. The Fed wants to keep the pressure on until it is convinced by the data that inflation is moving back toward its 2% target in a sustainable way.

Friday will bring one such piece of data the Fed has been waiting on: the core personal consumption expenditure index, one of its preferred measures of inflation.

Here are three things that could affect markets tomorrow:

1. GDP reading

Another reading of gross domestic product for the fourth quarter is due out at 8:30 ET (13:30 GMT). Analysts are expecting a 2.9% increase over the third quarter.

2. Booking Holdings

The travel planning site Booking Holdings Inc (NASDAQ:BKNG) is expected to report earnings per share of $22 on revenue of $3.9 billion, and analysts will be listening to what it says about travel demand as spring break approaches.

3. Moderna earnings

Moderna Inc (NASDAQ:MRNA) is expected to report earnings of $4.70 a share on revenue of $5.05B. Analysts will be listening to what it says about its drugs under development as demand for Covid-19 vaccines declines.