Inflation reading, Exxon earnings, Procter & Gamble: 3 things to watch

Investing.com -- After rallying early in the day after stronger than expected data on gross domestic product for the second quarter, stocks turned red on Thursday and threatened to end the Dow's 13-day winning streak.

The Dow hasn't had that many straight days of gains since the late 1980s, and extending it to a 14th day, as it could have on Thursday, would have matched a streak not seen since before the 20th century, just after the index itself was created.

Rising Treasury yields were seen as part of the culprit weighing on sentiment in the afternoon.

The move comes after GDP clocked in at 2.4% last quarter, stronger than expected and above the first quarter level. The Federal Reserve raised interest rates another quarter of a percentage point on Wednesday and wouldn't rule out raising them again this year to tame inflation.

Analysts expect that the Fed might be close to the end of its rate hiking, as some data indicate cooling prices. On Friday, the personal consumption expenditure index will provide another reading on inflation trends. 

The Fed's rate policy panel doesn't meet again until September, and futures traders are divided on whether the next rate hike, if one comes at all, could come then or in November.

Here are three things that could affect markets tomorrow:

1. Inflation reading

The personal consumption expenditure index is expected out at 8:30 ET (12:30 GMT). Analysts expect it to rise 3.1% for the year and fall 0.1% for the month. The core PCE is expected to rise 4.2% for the year and 0.2% for the month.

2. Exxon earnings

Exxon Mobil Corp (NYSE:XOM) is expected to report earnings per share of $2.04 on revenue of $82.8 billion.

3. Procter&Gamble

Consumer product giant Procter&Gamble Company (NYSE:PG) is expected to report earnings per share of $1.32 on revenue of $19.9 billion.