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Producer prices, jobless claims, Delta Air Lines report: 3 things to watch

Published 12/04/2023, 21:16
© Reuters.

By Liz Moyer

Investing.com -- Stocks turned lower as investor optimism about the potential for a less aggressive Federal Reserve gave way to fear about a possible recession.

Minutes of the Fed's last meeting that were released earlier on Wednesday showed the policymakers were concerned about a recession, too, forecasting a mild downturn after the turmoil in the banking sector, which is expected to contract lending.

Concerns about a recession come despite Wednesday's reading on consumer prices in March, which came in cooler than expected. 

Still, the concerns aren't seen as being strong enough to justify a pause in rate increases by the Fed at its next meeting in May. Futures traders continue to factor in a quarter of a percentage point increase next month, according to the Fed Watch tool.

Thursday brings more inflation data in the form of producer prices, which are expected to moderate from the same time last year, and unemployment claims, which are expected to inch higher than the prior week.

The first quarter earnings season will kick off Friday with reports from big banks including JPMorgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC). Analysts will be listening to what banking executives say about credit conditions and business and consumer sentiment.

Here are three things that could affect markets tomorrow:

1. Producer prices

The PPI readings are due out at 8:30 ET (12:30 GMT). Analysts expect the topline to rise 3% over last year and 0.1% for the month of March. Core PPI, which excludes food and fuel, is expected to rise 3.4% for the year and 0.3% for the month. The annual readings are expected to moderate from last year, while the monthy expectations are for prices to tick higher.

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2. Jobless claims

Initial jobless claims for last week, due out at 8:30 ET, are expected to be 232,000. That would be slightly higher than the 228,000 reported the prior week.

3. Delta Air Lines 

Delta Air Lines (NYSE:DAL) is expected to report earnings of 32 cents on revenue of $12.03 billion. Analysts will be listening to what executives say about labor and fuel costs and travel demand.

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