Private payrolls, job openings, non-manufacturing index: 3 things to watch

Investing.com -- Stocks headed lower on Wednesday as investors paused from a holiday break to take in what the Federal Reserve deliberated last month.

Nearly all of the policy makers at the June meeting agreed that rate hikes should start again after pausing. They expressed concerns about the strength in the labor market and "unacceptably high" inflation. 

In the weeks since that meeting, Fed Chairman Jerome Powell strengthened expectations for another rate hike, or two, arguing that monetary policy wasn’t restrictive enough. He wouldn't rule out the possibility of raising rates again this year. Futures traders have taken that to heart, factoring in at least two increases, starting with a quarter-point rate increase in July.

The Fed has stressed the importance of allowing what it has done so far to filter through the economy and curb inflation, but several Fed members have suggested recently that much of the effect of their actions has been realized already.

On Friday, the Fed will get a key data report on jobs for June that it will be able to use in setting the next step for interest rates.

Here are three things that could affect markets tomorrow:

1. Jobs report

Before Friday's big report on jobs, Thursday will bring ADP's private payrolls report at 8:15 ET (12:15 GMT). Analysts expect it will say companies added 230,000 jobs in June, a slower pace than the prior month.

2. JOLTs job openings

The JOLTs report on job openings is due out at 10:00 ET. Analysts expect it to say there are 9.9 million openings as of the end of May, down from the previous month.

3. ISM services

The ISM non-manufacturing index for June is due out at 10:00 ET. Analysts expect a reading of 51, up slightly from the prior month.