Week Ending May 20, 2023: $175.16 +$2.59 +1.48%
May 19, 2023 12:43:11 GMT -8
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Post by Dave on May 19, 2023 12:43:11 GMT -8
What to Expect in the Markets Next Week
Events Calendar:
Monday, May 22
Heico Corp. (HEI), Ryanair Holdings (RYAAY), Zoom Video Communications (ZM), and Nordson Corporation (NDSN), Integrated Shipping Services Ltd. (ZIM) 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)
More Retail Earnings
We can expect more earnings from the retail sector next week, giving us further insights on consumer spending in the first quarter. Lowe’s, AutoZone, Dick’s Sporting Goods, BJ Wholesale Club, Urban Outfitters, Costco, Dollar Tree, Best Buy, Burlington Stores, and The Gap will be among those reporting. We can also expect earnings from Zoom Video Communications, Nvidia, and TD Bank.
Despite fears of an economic downturn, fewer S&P 500 companies are discussing the possibility of a recession now compared to the past three quarters, according to research from FactSet. Of the companies reporting earnings so far (more than 90% of the total), just 107 have cited the term “recession” in their earnings calls, compared to a high of 238 in the second quarter of last year.
The Fed's Preferred Inflation Gauge
On Friday, the Bureau of Economic Analysis (BEA) will issue its latest Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge. The index likely rose 0.2% last month, accelerating from a 0.1% increase in March. On an annual basis, prices were likely up 4.1%, at the slowest pace since May 2021 and compared with a 4.2% gain in March. Core prices, which exclude volatile food and energy costs, are projected to have risen 0.3% from March, and 4.6% year-over-year.
Housing Market Updates
Updates on the housing market next week will include new and pending home sales for April. New home sales likely totaled 660,000 last month, down from 683,000 in March. On Thursday, the National Association of Realtors (NAR) will issue its Pending Home Sales Index (PHSI), a leading indicator of future home sales. Pending home sales fell 5.2% in March, or 23.2% year-over-year, suggesting the U.S. housing market is still under pressure despite a plateau in mortgage rates and a small rebound in home prices in late winter as tracked by the Case-Shiller Index.
Events Calendar:
Monday, May 22
Heico Corp. (HEI), Ryanair Holdings (RYAAY), Zoom Video Communications (ZM), and Nordson Corporation (NDSN), Integrated Shipping Services Ltd. (ZIM) 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)
More Retail Earnings
We can expect more earnings from the retail sector next week, giving us further insights on consumer spending in the first quarter. Lowe’s, AutoZone, Dick’s Sporting Goods, BJ Wholesale Club, Urban Outfitters, Costco, Dollar Tree, Best Buy, Burlington Stores, and The Gap will be among those reporting. We can also expect earnings from Zoom Video Communications, Nvidia, and TD Bank.
Despite fears of an economic downturn, fewer S&P 500 companies are discussing the possibility of a recession now compared to the past three quarters, according to research from FactSet. Of the companies reporting earnings so far (more than 90% of the total), just 107 have cited the term “recession” in their earnings calls, compared to a high of 238 in the second quarter of last year.
The Fed's Preferred Inflation Gauge
On Friday, the Bureau of Economic Analysis (BEA) will issue its latest Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge. The index likely rose 0.2% last month, accelerating from a 0.1% increase in March. On an annual basis, prices were likely up 4.1%, at the slowest pace since May 2021 and compared with a 4.2% gain in March. Core prices, which exclude volatile food and energy costs, are projected to have risen 0.3% from March, and 4.6% year-over-year.
Housing Market Updates
Updates on the housing market next week will include new and pending home sales for April. New home sales likely totaled 660,000 last month, down from 683,000 in March. On Thursday, the National Association of Realtors (NAR) will issue its Pending Home Sales Index (PHSI), a leading indicator of future home sales. Pending home sales fell 5.2% in March, or 23.2% year-over-year, suggesting the U.S. housing market is still under pressure despite a plateau in mortgage rates and a small rebound in home prices in late winter as tracked by the Case-Shiller Index.