Bed Bath & Beyond earnings, consumer prices, Fed minutes: 3 things to watch

By Liz Moyer

Investing.com -- Stocks were mixed on Tuesday, with the S&P 500 treading water, as investors awaited tomorrow's report on consumer prices for March.

Inflation is expected to cool from the prior month and from the same month last year, though core prices, which exclude food and fuel, are expected to edge slightly higher compared to March 2022.

The report is likely to be one of the Fed's central data inputs as it tries to decide the next move on interest rates. Last week, data showed falling job openings and rising unemployment claims, evidence that the tight labor market may be loosening somewhat. But Friday's report on jobs in March was about at expectations, leaving futures traders to speculate that the Fed would continue to raise rates rather than pause in May.

There appears to be a difference of opinion among Fed officials. New York Fed President John Williams said Tuesday that there was still more work to be done to bring prices lower, remarks similar to some of his colleagues. 

But Chicago Fed President Austan Goolsbee spoke about "patience,” as they look at the effect of tighter credit conditions in the banking system after the collapse of two banks in March. 

For now, futures traders are factoring in a quarter of a percentage point increase in rates in May.

Here are three things that could affect markets tomorrow:

1. Bed Bath&Beyond earnings

Struggling retailer Bed Bath&Beyond Inc (NASDAQ:BBBY) is slated to report a loss per share of $1.67 on revenue of $1.38 billion. Shareholder proxy advisor ISS recommended BBBY investors vote for the proposals on the company's proxy, saying the planned reverse stock split could allow it to raise enough capital.

2. Consumer prices

The consumer price index for March is due out at 8:30 ET (12:30 GMT). Overall, the CPI is expected to rise 5.2% annualized in March, and 0.2% from the month before. Core prices are expected to rise 5.6% for the year and 0.4% for the month.

3. Fed minutes

The Fed releases the minutes of its most recent meeting at 14:00 ET. Investors are hoping the text describing the policy makers' debate on rates will give them insights about what the Fed is using to make its decisions and whether it believes it is nearing the end of its tightening.