Brown Forman, Campbell Soup, GameStop reports: 3 things to watch

Investing.com -- Stocks struggled for direction on Tuesday as investors weighed the chances for another Federal Reserve interest rate hike next week.

Futures traders are putting the possibility of a pause at around 79%, though there is still an expectation the Fed could resume its rate hikes at the July meeting.

A pause would let policymakers assess the progress of their 10 rate increases since last year, bringing the Fed funds rate from near zero to over 5%. Economic data has shown prices are cooling, but other data shows the job market remains tight.

Still, the possibility of a recession is fading according to some economists. Goldman Sachs cut the probability of a recession in the next twelve months to 25% after the deal on the debt ceiling ended that uncertainty. Its earlier outlook had a 35% probability.

Goldman's 2023 growth forecast is 1.8%.

Fed policy makers will release their own set of projections on economic growth, unemployment and inflation when they release their decision on rates next week.

Here are three things that could affect markets tomorrow:

1. Brown Forman earnings

Spirits maker Brown Forman (NYSE:BFb) is expected to report earnings per share of 42 cents on revenue of $988.7 million.

2. Campbell Soup

Packaged foods giant Campbell Soup Company (NYSE:CPB) is expected to report earnings per share of 65 cents on revenue of $2.2 billion.

3. GameStop reports

Videogame retailer GameStop Corp (NYSE:GME) is expected to report a 12 cent a share loss on revenue of $1.3B.