By Liz Moyer
Investing.com — Stocks wobbled around on Wednesday after mixed corporate earnings muddied the outlook for interest rates.
Regional banks, including Western Alliance Bancorporation (NYSE:WAL) in Phoenix, are coming back strongly amid signs deposits are stabilizing after March’s sector turmoil. Western Alliance said late Tuesday it had added $2 billion of deposits in April after first-quarter deposits dipped 11% from the fourth quarter levels.
Other big regional banks are set to report tomorrow.
The Federal Reserve is closely watching economic data and corporate earnings as it heads into its next decision on rates in May. Expectations are that the Fed will raise rates another quarter of a percentage point and perhaps pause after that.
The Fed’s Beige book, a periodic look at conditions in its regional districts, said that economic activity has changed very little in recent weeks, though there were signs that inflation was cooling just as the recent banking turmoil sapped lending activity.
This week brings data on initial jobless claims and existing home sales to add to its data mix.
Here are three things that could affect markets tomorrow:
1. Taiwan Semiconductor
Contract chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM) is expected to report earnings per share of $1.22 on revenue of $17B.
2. AT&T earnings
Telecom giant AT&T Inc (NYSE:T) is expected to report earnings per share of 58 cents on revenue of $30.2B.
3. American Express
Financial services firm American Express Company (NYSE:AXP) is expected to report earnings of $2.66 on revenue of $13.9B.
