It’s a big week on the economic data and political fronts. Investors will face key inflation data and central bank meetings, as well as other economic and earnings releases.
The Federal Reserve’s monetary policy committee will announce a decision on Wednesday. Futures markets are massively pricing in a pause in interest rate hikes. The European Central Bank is expected to raise its interest rate target by a quarter of a percentage point on Thursday.
The Bureau of Labor Statistics will release the consumer price index for May on Tuesday, followed by the producer’s equivalent on Wednesday. Consensus estimates call for increases of 4.2% and 1.5%, respectively.
Other economic data released this week will include the National Federation of Independent Business’s Small Business Optimism Index for May on Tuesday, the Census Bureau’s retail sales data for May on Thursday and the Consumer Sentiment Index for the University of Michigan for June Friday.
Revenue reports will come from
on Wednesday, and
will also host an Investor Day on Tuesday.
Oracle reports fourth quarter fiscal 2023 results.
The Home Depot is hosting its 2023 Investor and Analyst Conference.
The Labor Office Statistics publishes the consumer price index for the month of May. The consensus estimate calls for the CPI to rise 4.2% year-over-year, while the core CPI, which excludes volatile food and energy prices, is expected to rise 5 .2%. That compares to gains of 4.9% and 5.5%, respectively, in April.
The National Federation of Independent Business publishes its Small Business Optimism Index for the month of May. Expectations are for a reading of 89, matching April data. The index remains mired well below historical averages as small business owners struggle to find skilled workers for vacant positions.
Lennar Reports Second Quarter Fiscal 2023 Results.
BlackRock is holding its 2023 Investor Day.
The Federal Free Market The Committee announces its monetary policy decision. Traders are banking on a 26% chance that the FOMC will hike the federal funds rate by a quarter of a percentage point to 5.25%-5.50%. Pause, jump or rise has been the debate on Wall Street since the last central bank meeting in early May. The most likely outcome is for the FOMC to skip this meeting but raise interest rates by a quarter of a percentage point at its next meeting in late July.
BLS press releases the May producer price index. The PPI is expected to rise 1.5% year-over-year, nearly a percentage point less than in April. The core PPI is expected to rise 2.9%, three tenths of a percentage point less than before. The PPI is currently at its lowest level since January 2021.
Adobe reports second-quarter fiscal 2023 results. Analysts polled by FactSet expect the company to earn $3.79 per share, up 13% from the second quarter of last year, on sales of $4.8 billion, an increase of 9%. Shares of the software maker have risen 35% this year, slightly outpacing the Nasdaq 100.
Kroger is hosting a conference call to discuss quarterly results.
The European Central Bank announces its monetary policy decision. The ECB is widely expected to raise its main short-term interest rate by a quarter of a percentage point, from 3.25% to 3.5%. Traders are expecting at least one more rate hike after this next meeting as inflation has proven to be more stubborn in the Eurozone than in the US.
The Census Bureau reports retail sales data for the month of May. The consensus call is that retail spending remains flat month-over-month at $686 billion, following a 0.4% increase in April.
The University of Michigan publishes its consumer sentiment index for the month of June. Economists forecast a still austere reading of 60, one point higher than in May.
Write to Nicholas Jasinski at email@example.com