A Week Of Economic Data That Could Shift The Market Lies Ahead, Let’s Take A Look At What Else Is On The Calendar 📅
This week we have a slue of crucial April economic data that will be flowing in this week that will give investors a better idea of when a rate cut can be expected. April Inflation reading and updates on retail sales are 2 of our marquee events that highlight our calendar this week, lets take a look at what else is ahead:
Monday | May 13th
Fed Vice Chair Phillip Jefferson and Cleveland Fed President Loretta Mester join on a panel
Tuesday | May 14th
8:30AM EST – PPI (Expected 0.3%)
8:30AM EST – Core PPI (Expected 0.2%)
10AM EST – Jerome Powell Speaks
Wednesday | May 15th
8:30AM EST – CPI (Expected 0.4%)
8:30AM EST – Core CPI (Expected 0.3%)
8:30AM EST – US Retail Sales (Expected 0.5%)
Thursday | May 16th
8:30AM – Initial Jobless Claims (Expected 219K)
Inflation was slated to be stickier-than-usual in Q1 in order to scale back investors expectations for a rate cut, however on Wednesday this will give the market its first look at where the Fed is standing on when that cut will come. Wall Street is expecting an annual gain of 3.4% for headline CPI which would be a decrease from the 3.5% that was posted in March. CPI core is expected to raise 3.6% YoY which would be a slow down of the 3.8% increase in March. Heading into the week the markets are currently pricing in less than two interest rate cuts for 2024.
Earnings Snapshot 📸
Lets take a look at what we have on the books for earnings this week:
Monday | May 13th
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Tuesday | May 14th
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Wednesday | May 15th
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Thursday | May 16th
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With earnings season in full swing and another solid week ahead, will we continue to see the same trends? It doesn’t matter if a company is beating EPS & Revenue because it seems most investors are reacting to projections for the following Quarter and for FY adjusted projections. Unfortunately because most companies are being hit by the economy as well so conservative estimations are yielding positive reactions from investors. This week for earnings the safe play would be no play at all or not swinging positions through earnings, there will always be opportunities to catch momentum and the run up pre call but always wise to trim down positions going into reporting. Let’s have ourselves a week and stay tuned for Deep Dive posts coming throughout the week!
