The week ahead for investors June 12, 2023

Dive into this week’s key financial happenings with our succinct, easy-to-understand summaries of the most crucial economic events. Designed to keep you up-to-date, our roundup empowers you to navigate the week ahead and seize unfolding opportunities

Key Points:

• The Labor Department will release its latest data on consumer prices on Tuesday, followed by producer price data on Wednesday.
• The Federal Reserve will hold a two-day policy meeting, with a decision on whether to continue or pause interest rate hikes due on Wednesday.
• Updates on retail sales and consumer sentiment will be released later in the week.
• Major companies including Oracle, Adobe, Kroger, and Lennar Corporation will be releasing their earnings.
• The Consumer Price Index for May is expected to show a slight decrease from April, with the Producer Price Index following on Wednesday.
• The Federal Reserve is expected to pause its interest rate hikes, keeping the fed funds rate steady.
• An update on U.S. retail sales due on Thursday will show the impact of inflation on consumer shopping trends.

The Week Ahead for Investors

As we wave goodbye to a week that saw the S&P 500 climb into bullish territory, we prepare for a fresh week filled with important economic insights. The spotlight will be on the release of new inflation data and the Federal Reserve’s verdict on interest rates.

Inflation and Interest Rates: The Big Players of the Week

Come Tuesday, the Labor Department will offer its most recent data on consumer prices, followed by producer price data on Wednesday. The focal point of the week, however, may very well be the Federal Reserve’s two-day policy meeting, commencing on Tuesday. All eyes will be on the Federal Reserve on Wednesday to see whether they choose to push forward with interest rate hikes or put them on pause.

Updates on Retail Sales and Consumer Sentiment

Additional updates to look out for throughout the week include retail sales and consumer sentiment. These reports can provide valuable insights into the state of the economy and the mindset of the consumers that drive it.

Earnings Reports

Several major companies, including Oracle, Adobe, Kroger, and Lennar Corporation, will be disclosing their earnings next week. These reports could significantly impact the markets and are certainly worth keeping an eye on.

Event Calendar

1. Monday, June 12: Oracle, ECARX Holdings, and Streamline Health Solutions release earnings.
2. Tuesday, June 13: NFIB Optimism Index for May, Consumer Price Index for May, Burford Capital Limited, and Motorcar Parts of America earnings.
3. Wednesday, June 14: Producer Price Index for May, Federal Reserve Interest Rate Decision, Anterix, and Aurora Cannabis earnings.
4. Thursday, June 15: U.S. Retail Sales for May, Empire State Manufacturing Survey for May, Philadelphia Fed Manufacturing Survey for May, Adobe, The Kroger Company, Lennar Corporation, Jabil, and Cognyte Software earnings.
5. Friday, June 16: Triple Witching, University of Michigan Consumer Sentiment Index Preliminary Reading for June.

The State of Inflation

The week will kick off with the release of the Labor Department’s Consumer Price Index (CPI) for May on Tuesday. The CPI is projected to show a slight decrease from April. This is followed by Wednesday’s release of the May Producer Price Index (PPI), an important measure of wholesale inflation.

Fed’s Decision on Interest Rates

Midweek, we will see the Federal Reserve’s Federal Open Market Committee (FOMC) announce its decision on interest rates. The central bank has been raising rates for the last ten meetings, aiming to tame inflation. The general consensus is that the Fed will likely pause the rate hikes, keeping the fed funds rate steady.

Updates on Retail Sales

An update on U.S. retail sales from the Census Bureau is due on Thursday. This will shed light on consumer shopping trends and their reaction to inflation. The trend of the last few months shows that inflation-cautious shoppers have slowed their spending, a pattern likely to continue in May.

Conclusion

As we step into a new week, investors need to keep a finger on the pulse of these key economic updates. Whether you are watching the consumer prices, the Federal Reserve’s policy decisions, retail sales, or company earnings, the upcoming week promises to be eventful and informative.