US Market Week Ahead: Earnings from Nike, FedEx; Data on PCE Inflation, Personal Income, and Spending

June 24, 2024

This week, several major companies are scheduled to report their earnings. Notable names include Nike, Inc (NYSE: NKE), FedEx Corporation (NYSE: FDX), Carnival Corporation (NYSE: CCL), Micron Technology, Inc (NASDAQ: MU), Paychex, Inc (NYSE: PAYX), General Mills, Inc (NYSE: GIS), McCormick & Company Inc (NYSE: MKC), and Walgreens Boots Alliance, Inc (NYSE: WBA). Each of these companies operates in diverse sectors, providing a broad view of the economic landscape through their financial performances.

The week is also packed with vital economic data, with a strong focus on inflation and consumer behavior, which are critical for shaping monetary policy expectations. Foremost among the data releases is the Personal Consumption Expenditures (PCE) Price Index for May. This index is the Federal Reserve’s (Fed) preferred measure of inflation, making it highly influential.

Recent data showed that the consumer price index (CPI) for May came in weaker than expected at 3.3%. Market expectations are for a similarly soft reading for the PCE, with core prices anticipated to rise by 0.1% month-over-month and to decelerate to 2.6% year-over-year from 2.8%. A continued disinflationary trend would reinforce the notion that inflation pressures are easing, potentially impacting bond yields and monetary policy decisions.

Reports on personal income and spending for May will also be critical. These indicators provide a direct view of consumer health and economic momentum. Given last week’s weaker retail sales data, spending figures for May might reflect a similar softness. If confirmed, this would suggest that consumers are becoming more cautious, possibly due to higher interest rates and lingering inflationary concerns.

Several other important releases will provide further context to the economic outlook, including the first quarter (Q1) GDP Growth (Final Reading), Durable Goods Orders (May), and the US Conference Board’s Consumer Confidence Index (June).

In addition, speeches from several Fed officials are expected throughout the week. These could offer further clues about the trajectory of interest rates, especially in light of the recent economic data. The Fed’s annual bank stress test results will also be released, assessing the resilience of major financial institutions under hypothetical adverse economic conditions.

The housing market will have a number of key indicators due for release. These include new and pending home sales for May, the S&P/Case-Shiller Home Price Index for April, and the Federal Housing Finance Agency (FHFA) house prices for April. These reports will provide a comprehensive view of the housing market’s health, which is crucial given its significant impact on the broader economy.

Regional manufacturing indices will offer localized insights into economic activity. Key releases include the Dallas Fed Manufacturing Index for June, the Richmond Fed Manufacturing Index for June, the Chicago Fed National Activity Index for May, and the Kansas Fed Manufacturing Index for June. These indices help to paint a detailed picture of the manufacturing sector’s performance across different regions of the United States.

In summary, the week ahead in the US market is set to be data-heavy, with a plethora of earnings reports and economic indicators that will provide valuable insights into the current state and future direction of the economy. Investors and policymakers will be closely monitoring these developments to make informed decisions in an environment that remains complex and dynamic.

Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.


Hailey Chung

As a lifelong learner, Hailey strives to simplify finance for everyday investors, making it relatable and enjoyable. She desires to support investors with various background, whether they are grappling with limited time and resources in seeking financial freedom or are sincere in stewarding their money well as a token of gratitude for God's provision. With a focus on responsible investing, Hailey balances caution and opportunity, believing life's too short to stress over market fluctuations. Beyond the pursuit of profits, she advocates for investments aligned with building a better world. As Manager of Content at ProsperUs, she leverages her journalism background from The Edge Malaysia, where she honed her skills at the capital and corporate desk.

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