Top News in Finance for June 30, 2023

KEY POINTS

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

• Receding Inflation – Federal Reserve’s favored inflation metric likely to indicate a slowing pace in price pressures.
• Nike Stumbles – Nike witnesses its first earnings miss in three years, sending shares lower in pre-market trading.
• Apple Nears Trillion Mark – Apple’s market capitalization approaches the $3 trillion mark, spurred by optimistic forecasts from Citi.
• Indiana Jones’ Soft Start – The latest Indiana Jones installment predicted to open to modest box office returns, extending Disney’s soft opening streak.
• Michigan Consumer Confidence – The Michigan Consumer Sentiment Index is predicted to record a marginal uptick for June, potentially influencing market sentiment.

Receding Inflation

Market expectations point towards the Core Personal Consumption Expenditure (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, to indicate an easing in price pressures. A drop from 0.4% in April to 0.3% in May is expected when the index is released, an outcome that could influence the Fed’s decision on interest rates in its July meeting.

Nike Stumbles

Sportswear giant Nike reported its first quarterly earnings miss in three years, causing a 3% dip in its shares during pre-market trading. Despite an increase in revenue, lower profit margins and an unexpected drop in net income compared to last year contributed to the earnings miss.

Apple Nears Trillion Mark

Apple’s market capitalization is edging towards an unprecedented $3 trillion mark, with its shares trading near all-time highs. The positive trajectory follows Citi’s initiation of Apple coverage with a ‘Buy’ rating and a $240 target price, suggesting a potential 27% upward move from Thursday’s closing price.

Indiana Jones’ Soft Start

The new Indiana Jones film, despite its star-studded cast and hefty production budget, is projected to have a lukewarm opening at the box office. This continues the recent trend of soft openings for Disney, with earlier releases this month such as “The Flash” and “Elemental” underperforming at the box office.

Michigan Consumer Confidence

The Michigan Consumer Sentiment Index is anticipated to register a slight increase in June, with a reading of 64, up from 63.9. The index, a key measure of consumer confidence, could provide critical insights into future consumer spending patterns and overall economic sentiment.