What will drive the markets this week?
Last week, the closing of the trading week on Friday brought a decline in U.S. stocks, concluding a week that revolved around the testimony of Federal Reserve Chairman Jerome Powell. Powell’s statements hinted at the possibility of forthcoming interest rate hikes, although the central bank expressed a cautious approach.
European shares followed suit with a dip, as the week unfolded with significant news related to central bank policies, further reinforcing the notion of potentially prolonged higher interest rates.
Meanwhile, Asia-Pacific markets witnessed losses as investors closely monitored inflation data from Japan and Singapore. Additionally, the market paid close attention to flash estimates from au Jibun bank concerning Japan’s manufacturing and services sectors.
This week, we can anticipate updates on the housing market, including April home prices and May new home sales. On Friday, the Bureau of Economic Analysis (BEA) will provide the release of the Personal Consumption Expenditures (PCE) Price Index, which serves as the Federal Reserve’s preferred inflation measure.
Furthermore, we will receive consumer sentiment readings from both the Conference Board and the University of Michigan, along with the final estimate for the first-quarter gross domestic product (GDP). Additionally, inflation and unemployment data for the eurozone will also become available. Notable companies such as Carnival Cruise Line, Walgreens, Micron Technology, General Mills, and Nike are expected to report their earnings next week.
Events expected to move the markets this week
Monday, June 26
- Carnival Corporation (CCL) and Sigma Lithium Corp. (SGML) report earnings
- Dallas Fed Manufacturing Index (Jun)
Tuesday, June 27
- Walgreens Boots Alliance (WBA) and Jefferies Financial Group (JEF) report earnings
- S&P Case-Shiller National Home Price Index (Apr)
- FHFA House Price Index (Apr)
- New Home Sales (May)
- CB Consumer Confidence Index (Jun)
- Richmond Fed Manufacturing Index (Jun)
- Dallas Fed Services Index (Jun)
- Durable Goods Orders (May)
Wednesday, June 28
- Micron Technology (MU), General Mills (GIS), Concentrix Corporation (CNXC), H.B. Fuller Company (FUL), and Unifirst Corporation (UNF) report earnings
- Retail Inventories (May)
- Wholesale Inventories (May)
- Goods Trade Balance (May)
- Bank Stress Test results to be published
Thursday, June 29
- Nike (NKE), Paychex Inc. (PAYX), McCormick & Company (MKC), and Acuity Brands Inc. (AYI) report earnings
- U.S. GDP Growth Rate - Final Reading (Q1 2023)
- Pending Home Sales (May)
Friday, June 30
- Constellation Brands Inc. (STZ) reports earnings
- Personal Income and Spending (May)
- Personal Consumption Expenditures (PCE) Price Index (May)
- Chicago Purchasing Managers’ Index (PMI) (May)
- University of Michigan Consumer Sentiment Index - Final (Jun)
- Euro Area Inflation Rate - Flash Estimate (Jun)
- Euro Area Unemployment Rate (May)