What will drive the markets this week?
On Friday, the Nasdaq marked its fifth consecutive record closing high, driven by gains in Adobe and other tech-related stocks, while the S&P 500 and Dow closed slightly lower. For the week, the Dow fell 0.5%, the S&P 500 rose 1.6%, and the Nasdaq increased 3.2%.
European shares edged higher on Monday, with banks and technology stocks rebounding from last week’s losses, spurred by political uncertainties in France. Danish insurer Topdanmark soared on news of a buyout bid by Sampo. The pan-European STOXX 600 rose 0.1%, recovering from its worst weekly drop this year.
Asia-Pacific markets showed mixed results after the Bank of Japan maintained its benchmark interest rate but hinted at reducing its purchase of Japanese government bonds.
In a holiday-shortened week, investors will be closely monitoring comments from Federal Reserve representatives and several economic releases to gauge whether inflation is likely to continue its downward trend. Markets will be closed on Wednesday in observance of the Juneteenth national holiday.
The housing market will gain clarity with the release of data on existing home sales, housing starts, and homebuilder confidence, alongside earnings reports from builders Lennar (LEN) and KB Home (KBH).
Additionally, grocery store chain Kroger (KR) is set to report this week as it continues to seek approval for its merger with Albertsons (ACI).
Events expected to move the markets this week
Monday, June 17
- Empire State Manufacturing Survey
- Philadelphia Fed President Patrick Harker and Federal Reserve Gov. Lisa D. Cook deliver remarks
- La-Z-Boy (LZB) releases earnings
Tuesday, June 18
- Advance retail sales (May)
- Industrial production and capacity utilization (May)
- Business inventories (April)
- Lennar and KB Home report earnings
- Dallas Fed President Lorie K. Logan, Richmond Fed President Tom Barkin, and Chicago Fed President Austan Goolsbee deliver remarks
Wednesday, June 19
- Juneteenth National Independence Day holiday, the market closed
- Housing market index (June)
Thursday, June 20
- Initial jobless claims (Week ending June 15)
- Housing starts (May)
- Accenture (ACN), Kroger, Darden Restaurants (DRI), and Jabil (JBL) report earnings
- Richmond Fed President Tom Barkin delivers remarks
Friday, June 21
- S&P Global flash composite U.S. PMI (June)
- Existing home sales (May)
- U.S. leading economic indicators (May)
- CarMax (KMX) reports earnings