By Liz Moyer
Investing.com -- Stocks gave back some of their gains on Monday as investors tried to start the week off on a positive note, cheered by reopenings in China.
Later this week, investors will get a look at the consumer price index for May, a barometer of the economy that comes out just as the Federal Reserve is set to meet next week to make its next move on interest rates.
The expectation continues to be that the Fed will raise its benchmark rate by a half-point when it meets, and make a similar move in July. But the outlook isn't as clear on September, when the Fed could return to a more typical quarter-point move or take a pause, depending on the direction of the economic data it gets.
Analysts expect the monthly gain in CPI to be 0.7%, after 0.3% the prior month. The yearly gain is expected to be 8.3%, which is the same as the previous 12-month gain. What everyone wants to see is evidence inflation has plateaued.
But before that a few more data points will come out, including the Fed's report on consumer credit, due out Tuesday morning.
People will be watching Apple Inc (NASDAQ:AAPL) and Twitter Inc (NYSE:TWTR) this week, as well. Apple held its Worldwide Developers Conference, rolling out new MacBooks powered by its next-generation M2 chip, as well as new functionality for iPhones and other devices. Meanwhile, Twitter is in the spotlight as Tesla (NASDAQ:TSLA) CEO Elon Musk makes noise about his multi-billion-dollar deal to buy the social media company.
Here are three things that could affect markets tomorrow:
1. Consumer credit
At 10 AM ET, the Fed will release its consumer credit data for April. Analysts expect it to say credit rose $35 billion to a record $4.6 trillion. But that monthly reading would be lower than both March and February readings.
2. J.M. Smucker earnings
While earnings season has mostly wound down, there are still a couple of reports this week. The J.M. Smucker Company (NYSE:SJM) is expected to report EPS of $1.88 on revenue of $1.98 billion. Analysts will be listening to what the food company says about costs and labor.
3. Yellen speaks
Treasury Secretary Janet Yellen is scheduled to testify in the Senate Finance Committee at 10 AM ET Tuesday. She'll be there to discuss the 2023 fiscal year budget. A separate hearing in the House on the same topic is scheduled for Wednesday.