Consumer prices, Beige Book, Fed speakers: 3 things to watch

Investing.com -- Stocks rose on optimism about an inflation report for June that could convince the Federal Reserve to come to the end of its interest rate hikes sooner than later.

Wednesday's report is expected to show inflation cooling from prior months compared with the blistering hot pace this time last year. But the question is whether it will convince the Fed that it doesn't have to raise rates again after the expected quarter of a point increase later this month.

The Fed has last week's jobs report for June, too, which showed a slower-than-expected pace of hiring, though unemployment also fell.

But a lower-than-anticipated rise in inflation in the report tomorrow could be a bullish sign for stocks.

Tech stocks rallied in the first part of the year at the prospect of the Fed reaching the end of its rate hikes. Futures traders are split on whether the Fed will raise rates again this fall, though Fed officials have said in recent weeks that they see more rate increases on the horizon.

Here are three things that could affect markets tomorrow:

1. Consumer prices

The consumer price index for June is expected out at 8:30 ET (12:30 GMT). Analysts expect a 3.1% annualized increase in the month and a 0.3% monthly increase. For core CPI, which excludes fuel and food prices, analysts expect an annualized gain of 5% and a monthly gain of 0.3%.

2. Fed beige book

The Fed also releases the latest of its periodic survey of its district banks, including anecdotes about consumer spending, services and manufacturing, business activity and other economic snapshots.

3. Fed speaks

More officials from the Fed are slated to speak on Wednesday, including Minneapolis Fed President Neel Kashkari at 9:45 ET and Cleveland Fed President Loretta Mester at 16:00 ET.