By Liz Moyer

Investing.com — Stocks bounced on Wednesday after the Federal Reserve minutes from this month’s meeting showed the policymakers were eager to move quickly on rate hikes and leave some breathing room on tightening later in the year.

These comments might have eased concerns that the Fed could act too aggressively to tip the economy into recession. At its two next meetings next month, the Fed will continue to follow a plan that would raise rates by half a percentage point. This is what markets also expect.

However, the minutes showed that members desired flexibility in adjusting policy based on economic developments.

The weekly jobless claims data will be released on Thursday. On Friday, we’ll have data about income, spending, and the personal consumption expenditure indicator, which the Fed considers the best inflation gauge. 

However, there are indications that the economy may be cooling. Retailers have reported that consumer spending patterns are changing in the face of rising inflation. Last month’s drop was 17%. Some market observers found it a comforting thought that the Fed may have to ease its tightening measures.

Americans will be heading out on Friday for the Memorial Day weekend. However, they are facing an average gasoline price of $4.599 per gallon, up from $4.123 per gallon a month earlier.

These are the three factors that will impact markets tomorrow.

1. Alibaba Earnings

Analysts at Investing.com predict that Alibaba Group Holdings Ltd. ADR (NYSE) will report earnings per share for $199 billion in revenue. 

2. Costco outlook

Costco Wholesale Corp (NASDAQ) reported EPS of 3.06 for $51.3 billion in revenue. Analysts will listen to executives’ comments about stock levels, consumer demand, and cost.

3. Dollar stores

Earnings will be reported by Dollar stores as well. Dollar General Corporation (NYSE) will report EPS at $2.33 per share on revenues of $8.7 Billion. Dollar Tree Inc (NASDAQ:) reported EPS of 2.01 for $6.8 million in revenue. Analysts will monitor for indications that lower income consumers are starting to reduce their spending due to rising inflation and keep them updated on the impact of pricing changes on shopping habits.