The Coming Week: An Eye on Prices

Investors will continue to sift through helpings of economic data in the coming week for signs that the Fed could be closer to increasing interest rates to stave off growing inflation. One of the most eagerly awaited numbers likely will be Friday's consumer price index.

"The market is very attuned to news on inflation and trying to put together any further early signs of acceleration. We're spooked about this now," said Jim Awad, president and market analyst at Awad Asset Management. Forecasts are calling for a 0.3% rise in April CPI on top of March's 0.5% increase. Excluding food and energy, core CPI is expected to rise 0.2%, down from the prior month's 0.4% increase.

"If [the CPI report] shows again that inflation is accelerating, then people will say [interest] rates will go higher," said Paul McManus, director of fundamental research at Independence Investments. In that case, stocks would react negatively, he said. ...