US Market Week Ahead: Retail Sales, Industrial Production, Manufacturing & Services PMIs, Lennar, and Kroger Earnings

June 17, 2024

Another week begins in the United States, promising fresh economic insights through various data releases and earnings reports that collectively depict the nation’s economic health.

The Retail Sales report for May is anticipated, with expectations of a 0.3% month-on-month growth. April’s flat reading hinted at a stagnation in consumer spending, making this report pivotal in gauging a potential rebound in consumer confidence and expenditure, crucial drivers of the economy.

Core Retail Sales, excluding volatile sectors, like food services and auto dealers, are vital as they directly impact the calculation of Gross Domestic Product (GDP). April showed a modest 0.2% increase, reflecting stable demand. The consensus for May anticipates a similar 0.2% rise.

The Philadelphia Fed Manufacturing Index for June, derived from a survey of 250 manufacturers, serves as an indicator of manufacturing sector health. After hitting a two-year high of 15.5 points in April, it moderated to 4.5 points in May, indicating continued but slower growth.

Industrial Production data for May will also be examined, following April’s 0.4% year-on-year (y-o-y) decline, marking the first downturn in three months, reflecting potential headwinds in the industrial sector. Expectations are for stability or a slight decline in May.

The housing market will come into focus with the Existing Home Sales report for May, forecasted at 4.1 million units after a 1.9% y-o-y decrease in April to 4.14 million units, the lowest in three months. The data is an essential indicator of the housing market’s strength and overall economic health.

Additionally, the S&P Global US Manufacturing and Services Purchasing Managers’ Indexes (PMI) for June will offer further insights into the economic landscape. May’s manufacturing PMI rose to 51.3 from 50 in April, signalling a modest sector improvement. Meanwhile, the services PMI held steady at 54.8, pointing to robust growth in the services sector.

On the corporate front, earnings reports from major firms like Lennar Corp (NYSE: LEN) and Kroger Co (NYSE: KR) will be monitored. Lennar’s performance will provide insights into the housing and construction sectors, while Kroger’s results will offer a snapshot of consumer behaviour and retail sector health.

In summary, the forthcoming week will deliver a wealth of information – from consumer spending and industrial production to housing market dynamics and corporate earnings – that will help shape understanding of the US economic trajectory.

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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