Small business survey, Bullard speaks, NATO summit: 3 things to watch

Investing.com -- Stocks were rising as investors awaited this week's inflation report for June.

The report, due out Wednesday, will be influential in the Federal Reserve's decision on interest rates when it meets later this month. That plus last week's jobs report, which showed the economy added fewer than expected jobs but maintained a still-tight labor market with a dip in unemployment.

The Fed is expected to raise rates by a quarter of a percentage point this month, but then the forecasts look murkier. Fed officials have signaled their interest in continuing to raise rates to combat inflation, which is expected to show a cooling in June from prior readings.

If the number on Wednesday comes in slower than expected, that could muddy the chances of another rate hike later this year. The Fed has said it expects its terminal rate to reach 5.6%, which would imply another two hikes after June.

Earnings start again later this week, as big banks kick off their second-quarter reports. Analysts will be listening to what executives say about loan and consumer spending trends.

Here are three things that could affect markets tomorrow:

1. Small business outlook

The NFIB small business optimism survey for June is out at 6:00 ET (10:00 GMT). Analysts expect a reading of 89.9, up from 89.4 in the prior report.

2. Bullard speaks

St. Louis Fed President James Bullard is expected to speak at 9:00 ET, as a series of Fed officials make public comments in advance of their quiet period before the Fed meeting.

3. NATO summit

President Joe Biden and other leaders are meeting in Lithuania for the annual two-day NATO summit, where issues including Ukraine security will likely be discussed. Biden traveled there Monday after meetings in the U.K.