What will drive the markets this week?
The previous week saw a lackluster ending for U.S. stocks as initial gains dwindled due to a temporary halt in U.S. debt ceiling negotiations in Washington. This setback dampened hopes of a swift agreement to avoid a default in the upcoming days. On the other hand, European stocks rallied, with Germany’s prominent stock index reaching an all-time high. In Asia, the Japanese market sustained its upward trajectory, hitting its highest level since 1990, while other Asia-Pacific markets also displayed encouraging progress.
This week, the retail sector is set to deliver a wave of earnings announcements. Companies such as Lowe’s, AutoZone, Dick’s Sporting Goods, BJ Wholesale Club, Urban Outfitters, Costco, Dollar Tree, Best Buy, and The Gap are scheduled to report their financial performance. Additionally, Zoom Video Communications, Nvidia, and TD Bank will also disclose their latest reports.
The Federal Reserve will release the meeting minutes from its most recent Federal Open Market Committee (FOMC) meeting, where policymakers decided to raise interest rates by 25 basis points. Furthermore, the Bureau of Economic Analysis (BEA) will publish the Personal Consumption Expenditures (PCE) Price Index for April, which is the preferred inflation gauge of the Federal Reserve. Alongside these events, the University of Michigan will provide insights into consumer sentiment, while the housing market updates will include data on new and pending home sales for April.
Events expected to move the markets this week
Monday, May 22
- Heico Corp. (HEI), Ryanair Holdings (RYAAY), Zoom Video Communications (ZM), and Nordson Corporation (NDSN) report earnings
Tuesday, May 23
- Lowe’s Companies (LOW), Intuit Inc. (INTU), Palo Alto Networks (PANW), AutoZone Inc. (AZO), Agilent Technologies (A), Dick’s Sporting Goods (DKS), BJ Wholesale Club (BJ), Williams-Sonoma Inc. (WSM), Toll Brothers Inc. (TOL) and Urban Outfitters Inc. (URBN) report earnings
- S&P Global Composite PMI - Flash Estimate (May)
- Richmond Fed Manufacturing Index (May)
- Building Permits - Final Reading (Apr)
- New Home Sales (Apr)
Wednesday, May 24
- Nvidia (NVDA), Analog Devices Inc. (ADI), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Snowflake Inc. (SNOW), Splunk Inc. (SPLK), U-Haul Holding Company (UHAL), and UiPath Inc. (PATH) report earnings
- FOMC Meeting Minutes
Thursday, May 25
- Costco Wholesale Corporation (COST), Royal Bank of Canada (RY), Medtronic (MDT), Toronto Dominion Bank (TD), NetEase Inc. (NTES), Vmware Inc. (VMW), Workday Inc. (WDAY), Autodesk Inc. (ADSK), Marvell Technology (MRVL), Dollar Tree (DLTR), Ulta Beauty (ULTA), Best Buy (BBY), Burlington Stores Inc. (BURL), Ralph Lauren Corp. (RL), and The Gap Inc. (GPS) report earnings
- Real Consumer Spending (Q1 2023)
- Chicago Fed National Activity Index (Apr)
- Kansas Fed Composite Index (May)
- Pending Home Sales (Apr)
Friday, May 26
- PDD Holdings Inc. (PDD) and Booz Allen Hamilton Corp. (BAH) report earnings
- Personal Consumption Expenditures (PCE) Price Index (Apr)
- Personal Income and Spending (Apr)
- U.S. Goods Trade Balance (Apr)
- Durable Goods Orders (Apr)
- Wholesale Inventories (Apr)
- Retail Inventories Excluding Autos (Apr)
- Univ. of Michigan Consumer Sentiment Index - Final (May)