Four things to watch in the stock market this week

The Nasdaq edged higher on Friday, notching its fifth consecutive record closing high as new data last week showed inflation continued to cool and Treasury yields fell. This week: The tech-heavy Nasdaq rose 3.2%, the S&P 500 rose 1.6%, and the Dow Jones Industrial Average fell 0.5%. Economic updates helped boost earnings. First, the May consumer price index (CPI) released on Wednesday was lower than expected and unchanged from April. Economists had expected growth of 0.1%. A day later, the producer price index (PPI) fell 0.2% for the month, compared with expectations for a 0.1% increase. (The Consumer Price Index measures the price of a basket of goods and services throughout the U.S. economy, while the Producer Price Index measures the price producers receive for goods and services in the market.) Both releases were welcomed by investors. They indicated that the Fed’s two-year plan to reduce inflation by raising and keeping interest rates high continues to be effective. The hope is that as prices fall, central banks will start cutting interest rates again. Federal Reserve Chairman Jerome Powell noted the development to reporters after the Federal Open Market Committee decided to keep interest rates on hold on Wednesday. However, he said more data is needed before making cuts. He did say a cut may be appropriate before the end of the year. The market seems to disagree. As of Friday, the CME Group’s FedWatch tool gave the best chance of two rate cuts this year – first in September and another in December. Among S&P 500 stocks, information technology was the week’s big winner, rising nearly 6% on the back of sharp gains in companies including Apple, Broadcom, Oracle and Adobe. It also helped that shares of portfolio heavyweight Nvidia rose 8.5% following a 10-for-1 stock split on Monday. On the other hand, the energy sector fell the most, followed by financials and industrials. Inside the club this week we heard news from Broadcom, which reported strong quarterly results and announced a 10-for-1 stock split. No portfolio companies report earnings in the week ahead. Technology stocks were the biggest winners in the first quarter, with 89% of companies in the industry reporting profits that exceeded expectations. Followed by health care (88%) and consumer staples (84%), according to FactSet. In terms of revenue, the real estate sector topped the list with 74% of companies reporting positive revenue surprises, followed by technology (71%) and healthcare (69%). Here’s what we’re looking at for the week ahead – noting that U.S. markets are closed on Wednesday for Juneteenth. Retail sales. May results due out on Tuesday should give consumers some glimpses of resilience. Where do people spend their money? What are they withdrawing? Investors were expecting an overall monthly gain of 0.3%, according to FactSet. Industrial production and capacity utilization. This will show how manufacturing, mining and electric and gas utilities are performing. According to FactSet, economists expect industrial production to grow 0.3% from last month and the capacity utilization rate to 78.6%, a slight increase from last month. housing. May new home starts and existing home sales dominated the weekend. Housing costs have been a major source of upward pressure on inflation, so any signs of relief will be welcomed by Wall Street. income. While no portfolio companies issued reports, two companies to watch were Lennar on Monday and Darden Restaurant on Thursday. Lennar is one of the largest homebuilders in the United States, so we can use this release to indirectly provide further clues about the future direction of inflation. Ideally, we’d like to see more supply coming, as that will be key to easing price inflation – and the key to the Fed cutting interest rates later this year. Darden Restaurants, the operator behind Olive Garden, Longhorn Steakhouse, Yard House and more, will provide another look at consumer spending. After Hours Monday, June 17: Lennar (LEN), La-Z-Boy (LZB) Tuesday, June 18 8:30 AM ET: Retail Sales 9:15 AM ET: Industrial Production and Capacity Utilization Rates before opening: Americas CarMart (CRMT) After opening: KB Home (KBH) On Wednesday, June 19, the US stock market was closed for Juneteenth. Thursday, June 20, 8:30 a.m. ET: Initial jobless claims 8:30 a.m. ET: Housing starts Pre-market: Accenture (ACN), Kroger (KR), Darden Restaurants (DRI), Czech Republic S&P (JBL) After-Hour: Smith & Wesson (SWBI) Friday, June 21, 10:00 AM ET: Existing Home Sales Pre-Opening: CarMax (KMX), FactSet (FDS) (see here for Jim Cramer Complete list of Charitable Trust stocks. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his Charitable Trust portfolio. If Jim talks about a stock on CNBC TV, he will wait 45 minutes after sending a trade alert. Wait 72 hours before executing a transaction. The above Investment Club information is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation shall exist or arise upon your receipt of any information related to Investment Club. Obligations. No specific results or profits are guaranteed.

On January 31, 2024, in the hall of the New York Stock Exchange (NYSE) in New York City, the United States, a trader was working, and the screen was playing Federal Reserve Chairman Jerome Powell after the Federal Reserve’s interest rate announcement. press conference held.

Brendan McDermid | Reuters

this Nasdaq Index The U.S. dollar edged higher on Friday, notching its fifth consecutive record closing high, as new data last week showed inflation continued to cool and Treasury yields fell.

About The Author

admin

See author's posts

About The Author

admin

Leave a Reply Cancel reply

Related News

People Also Read