Core PCE, Personal Spending, Powell: 3 Things to Watch

By Liz Moyer

Investing.com -- Stocks rose as investors tried to revive the summer rally after a few down days, but most everyone is focused on what happens Friday.

Federal Reserve Chair Jerome Powell is scheduled to speak at 10:00 ET (14:00 GMT) at the central bank's annual conference. He's expected to confirm their commitment to taming inflation but probably won't say which way the Fed is leaning for its September interest rate decision. Many expect another 0.75 percentage point increase, while others expect a smaller half-point hike.

The speech will come as another slate of economic data are released including the Fed's preferred inflation measure as well as information on personal spending and income.

If retail earnings have been any guide, the trend emerging is that middle and lower-income households are feeling pinched by rising prices for basics such as food so they aren't buying as much clothing or home items, while more affluent shoppers have continued to show up in stores. Retailers are slashing prices to move out inventory as they prepare for the holiday season.

Here are three things that could affect markets tomorrow:

1. PCE print

The Fed's favorite inflation measure, the personal consumption expenditures index, is due out at 8:30 ET (12:30 GMT). Analysts expect core PCE to rise 4.7% from last year and 0.3% from the prior month.

2. Spending and income

Data on personal spending and personal income are also out at the same time. Analysts expect personal spending to rise 0.4% and personal income to rise 0.6%.

3. Powell Speaks

Powell's speech at the Jackson Hole, Wyo. conference has been anticipated for days but he is unlikely to provide specifics about what the central bank policymakers are thinking. There are several more data releases that will come out before the Fed announces its next rate decision, including inflation and the August jobs report.