Consumer prices, small business optimism, Home Depot: 3 things to watch

Investing.com -- Stocks are muted with minutes to go before the closing bell on Monday as investors await the Tuesday release of consumer price index data for October.

Expectations are for inflation to ease from the prior reading, especially the top-line number. Investors are eager for data that would support the case for the Federal Reserve to be finished with interest rate increases, despite officials from the central bank leaving another hike as an option on the table.

This week also features earnings reports from major retailers such as Walmart (NYSE:WMT) and Target, with investors eager to hear any early commentary on holiday shopping season. Retailers have been trying to manage inventory levels and have started seasonal promotions earlier to convince shoppers to buy, though the outlook for retail sales is weaker than last year. Consumer spending has driven the economy despite higher prices for goods, though some consumers have shown signs of holding back their spending on discretionary items.

After tomorrow's CPI figures, there will be data on housing, unemployment, and producer prices this week. The economic readings will give the Fed something to ponder ahead of their meeting in December. Futures traders see a high probability that rates will hold.

Here are three things that could affect markets tomorrow:

1. Consumer prices

The consumer price index for October is due out at 08:30 ET (13:30 GMT). Analysts expect the yearly gain for the top line number to rise 3.3% from the prior year, while it is expected to rise 0.1% for the month. Core CPI is expected to rise 4.1% for the year and 0.3% for the month.

2. Small business optimism

The NFIB Small Business optimism index is due out at 06:00 ET. Analysts expect a reading of 90.5, down from 90.8 in the prior reading.

3. Home Depot

The home improvement store Home Depot Inc (NYSE:HD) is expected to report earnings per share of $3.76 on revenue of $37.6 billion.