This past week, although there were some fairly large moves for individual stocks, the indices were rather stagnant. The Dow, S&P, and Nasdaq were all roughly flat on the week, with each index seeking out a small gain. However, Russell saw nearly a 3% jump on the back of investor money flooding back into small-cap stocks. We likely won’t see the stagnancy that we saw this past week in the coming week, though. We’ve got some fairly important news coming out that will lead to some volatility in the markets!
Last week, we didn’t see many economic data releases, and the ones that we did see weren’t groundbreaking by any means. Consumer credit came in slightly higher than expectations, which isn’t cause for concern. Although initial jobless claims came in a bit higher than expected, the market did not seem to care very much, as this is a trend that has been ongoing for quite a few weeks now.
This week, we’ll see a bit more volatility in the market, as there’s quite a bit going on in terms of economic data releases. To start the week off, we’ll get May CPI data on Tuesday and PPI data on Wednesday. However, everyone’s eyes will be on the Fed and its next move, which will be announced Wednesday afternoon. Some think that the Fed may have one or two rate hikes left up their sleeve. However, we’ll have to wait to hear what Fed Chairman Jerome Powell has to say. Regardless of what the Fed does on Wednesday, we’re bound to see some huge swings in the market!
This week, we have another rather slow week in terms of corporate earnings, with only the following companies of note reporting their earnings:
06/12 – Oracle Corporation (ORCL)
06/14 – Lennar Corporation (LEN/LEN.B)
06/15 – Adobe (ADBE), The Kroger Company (KR)
It’ll be important to pay attention to LEN, as they will be providing important commentary around the housing market. Builders like LEN have continued to have a solid foundation for their business, despite the fact that interest rates have skyrocketed. However, it will be interesting to hear what they have to say around their backlog, and their guidance for the rest of the year.
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