Powell appearance, KB Home earnings, Winnebago: 3 things to watch

Investing.com -- Stocks couldn't sustain their recent rally on Tuesday but investors are looking to the testimony this week by Federal Reserve Chair Jerome Powell for some insights on what lies ahead for interest rates.

Powell is scheduled to give his semi-annual testimony on Capitol Hill, starting Wednesday with the House and then Thursday in the Senate. The appearances come just a week after the Fed paused rate increases but signaled it could and probably will raise rates again this year.

Futures traders overwhelmingly see the probability of a quarter of a percentage point increase in July. 

But the Fed also projects the benchmark rate could reach 5.6% by the end of the year, which would imply at least two increases of that amount.

Powell's words are coming as a slew of housing data comes out this week, including new and existing home sales. New home sales were hotter than expected in May, suggesting a housing market recovery despite elevated mortgage rates.

Here are three things that could affect markets tomorrow: 

1. Powell appears

Powell is scheduled to testify to the House Financial Services Committee starting at 10:00 ET (14:00 GMT), delivering remarks on the state of the economy and the Fed's actions to date to tame inflation.

2. KB Home earnings

Home builder KB Home (NYSE:KBH) is expected to report earnings per share of $1.31 on revenue of $1.4 billion.

3. Winnebago earnings

The recreational vehicle maker Winnebago Industries Inc (NYSE:WGO) is expected to report earnings per share of $1.80 on revenue of $983 million.