Fed speakers, Carmax earnings, Apogee: 3 things to watch

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After pausing on further interest rate increases at its meeting last week, Powell told lawmakers that the Fed wasn’t done with its tightening. More rate hikes are likely this year as the central bank fights inflation back to its 2% target rate.

Futures traders see a greater than 75% probability that the next rate hike will come in July, another quarter of a percentage point as the Fed nudges rates higher toward a 5.6% peak rate as it forecast last week. That implies another rate hike comes later this year.

The Fed is closely watching data on prices and jobs to make its decision, and the next meeting will convene as earnings for the second quarter are getting underway. That will be when executives forecast what they see coming for the second half of the year and what consumer spending trends look like heading into big shopping seasons like back to school and the holidays.

Here are three things that could affect markets tomorrow:

1. Fed speakers

More Fed officials are slated to speak tomorrow afternoon, including St. Louis Fed President James Bullard, slated to speak at 5:15 ET, and Atlanta Fed President Raphael Bostic, scheduled to speak at 8:00 ET. Cleveland Fed President Loretta Mester is on the calendar for 13:40 ET.

2. Carmax earnings

Used car seller CarMax Inc (NYSE:KMX) is expected to report earnings per share of 78 cents on revenue of $7.49 billion.

3. Apogee earnings

Apogee Enterprises Inc (NASDAQ:APOG) is expected to report earnings per share of 90 cents on revenue of $354 million.