Consumer prices, Cracker Barrel, Semtech reports: 3 things to watch

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Inflation has shown signs of moderating in recent months, fueling expectations the Federal Reserve was getting close to the end of its interest rate increases. The Fed has raised rates at 11 of its past 12 meetings, bringing its benchmark from near zero to above 5% as it tries to tame inflation.

Fed officials have signaled they could pause when they meet later this month while they assess their progress so far. But some have cautioned that a pause shouldn’t be interpreted as meaning they are done.

The central bank wants to get inflation back to its 2% target, suggesting rates might have to stay elevated in order to achieve that goal. 

While futures markets are in agreement that a pause is coming this month, traders are divided on the probability of a rate hike in November.

Wednesday’s CPI report for August will be a key input for the Fed as it heads into its meeting next week. 

Here are three things that could affect markets tomorrow:

1. Consumer prices

The consumer price index for August is due out at 8:30 ET (12:30 GMT). Analysts expect it to rise 3.6% for the year and 0.6% from July. Core CPI, which removes volatile food and energy prices, is expected to rise 4.3% for the year and 0.2% for the month.

2. Cracker Barrel earnings

The restaurant and retail chain Cracker Barrel Old Country Store (NASDAQ:CBRL) is expected to report earnings per share of $1.62 on revenue of $842.4 million.

3. Semtech reports

The chip maker Semtech Corporation (NASDAQ:SMTC) is expected to report earnings of 2 cents a share on revenue of $237.4 million.