US stocks (^GSPC, ^DJI, ^IXIC) are mixed on Monday morning as the market awaits consumer confidence, GDP and initial jobless claims data. Personal Consumption Expenditure (PCE) data, the Federal Reserve’s preferred measure of inflation, is also scheduled for release.
Carnival Cruises ( CCL ), FedEx ( FDX ), Nike ( NKE ), Micron ( MU ) and Levi’s ( LEVI ) will also report quarterly results this week.
Yahoo Finance Anchors Brad Smith and Madison Mills explain what investors should be watching for this week and how it could affect the broader market.
For more expert insights and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Nicholas Jacobino
Video transcript
Well, our main story this week.
Stock futures.
They are mixed as we enter the last trading week of June, and as Mattie mentioned the last trading week of the first half of 2024 right?
Things have reached record highs as we close out the second quarter of the year.
We’ve already seen some of those new records set during the second or first half.
The second quarter of this year and there.
We’re taking a look at Dow futures here this morning, up about 2/10 of a percent.
Uh, let’s rebuild this for a second here, and we’ll show you what the S and P 500 futures and the NASDAQ futures are doing.
They were mixed, as we were mentioning here just a moment ago, and even though we’re looking at all the movement that we’ve been following here pre-market as well, it’s kind of a quiet but noisy trading week here with some of the companies that will report earnings this week.
Micron Nike, FedEx paychecks, General Mills.
So you’ve got everything from the high seas and corporate carnival covered to what’s on your feet, what you’re wearing there and what’s being talked about at the dinner table that will be on display this week.
Some denim stocks will also come here.
Yeah, it’s interesting because we’re definitely nearing the end of earnings season and a bit of a quiet period when it comes to the catalyst for the market.
But you take a look at some of these big names.
A Levi’s is definitely a Nike, really giving you an insight into how the consumer is coping with record inflation.
You also have carnival, this duplication between these names, right?
You have consumer goods and consumer services.
Spending per person has been a critical thing to watch when it comes to consumer health, whether or not people are diving into services even though they’re struggling with their finances, we’ll be able to see well this when it comes to spending on these things.
And as Brad mentions on deck this week, we have two consumer readings with consumer confidence and consumer sentiment.
We’re also getting a bunch of data on housing as well as GDP for the first quarter.
All this will culminate in Friday’s big inflation, which is the personal consumption expenditure index.
Now this is critical because it includes, within it, the base index of the PC.
This is what the Federal Reserve views as the preferred gauge of inflation from their quotes, giving them the clearest indication of how the fight against inflation is going.
The route predicts 2.6%.
The critical thing to hear there is number two right.
The Fed wants to see 2% inflation.
That’s what the cycle of record-breaking interest rate hikes has been headed for all this time.
So if we see that 2.6% it could be a boom for the markets going forward.
And a question of whether a glove is enough for the Fed.
So far, it hasn’t been, but of course, it has entered screenings or screenings, at least entering that press.
Right now, the first case where we would see potential cuts coming from the Fed in September is what the CMB fed clock is looking at now that there is about a 60% chance of a cut in September, and then you have to look to in December for probably the next highest probability Among a number of possibilities, Uh, for a 45% reduction there in December also here.