Investing.com -- Stocks were lower on Thursday as investors continued to digest earnings reports from big tech companies.
After the enthusiasm for artificial intelligence earlier this year that provided a catalyst for the tech sector, the Nasdaq has fallen sharply in recent days. Earnings from Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) showed that progress in AI is uneven among firms, while Meta Platforms (NASDAQ:META) saw revenue surge from an advertising rebound that may still weaken in the fourth quarter because of economic uncertainty. Big energy companies are set to report early on Friday.
But investors will also be watching Friday's report on inflation in the form of the personal consumption expenditures index, the core reading of which is the Fed's preferred inflation gauge.
Futures traders see a near certainty that the Fed will pause on further interest rate hikes at its meeting next week despite Thursday's unexpectedly strong reading on third quarter gross domestic product, which was fueled by consumer spending. Expectations are also high that the Fed could pause in December. But Fed officials have said they might have to keep rates higher for longer to get inflation back to their 2% target rate.
Here are three things that could affect markets tomorrow:
1. Inflation report
The personal consumption expenditures index or PCE is due out at 8:30 ET (12:30 GMT). Analysts expect the September reading to rise 3.4% for the year and 0.3% for the month. The core PCE, which strips out fuel and energy prices, is expected to rose 3.7% for the year and 0.3% for the month.
2. Energy earnings
Chevron Corp (NYSE:CVX) is expected to report earnings per share of $3.60 on revenue of $51.4 billion. Exxon Mobil Corp (NYSE:XOM) is expected to report earnings per share of $2.37 on revenue of $94 billion.
3. Colgate-Palmolive earnings
Consumer product company Colgate-Palmolive Company (NYSE:CL) is expected to report earnings per share of 80 cents on revenue of $4.8 billion.