It’s an eventful week in the market, as high-profile companies prepare to report earnings and economic data is set to be released.
Bank stress tests are on the agenda, with the Federal Reserve revealing its annual stress test results for the largest U.S. banks on Wednesday. Results will determine how much banks can return to shareholders through stock buybacks and dividends.
On Tuesday, new home sales data for May and the Census Bureau’s durable goods report will also be released.
Meanwhile, personal income and expenditures data for May is set to come out on Friday, with economists predicting a 0.4% rise in income and a 0.3% increase in spending. The core personal-consumption expenditures price index is expected to rise 4.7% from last year, matching April.
Here’s what else to watch for this week:
Monday 6/26
Carnival reports second-quarter fiscal-2023 results.
Tuesday 6/27
Jefferies Financial Group and Walgreens Boots Alliance announce earnings. Delta Air Lines holds its 2023 investor day.
The Census Bureau releases the durable goods report for May, with economists forecasting a one percent decline in new orders for manufactured durable goods from April to $280 billion.
Economic Events to Watch Out For
New-Home Sales Report by Census Bureau
The Census Bureau is set to release its new-home sales data for May. The consensus estimate for this seasonally adjusted annual rate is 659,000 new single-family homes sold, which is 24,000 lesser than in April. According to reports, the median sales price was $420,800 in April, declining by 15.3% from the record high of almost $500,000 that was witnessed last October.
Micron Technology Earnings Report
Micron Technology is expected to release its third-quarter fiscal 2023 results. The company might bear a loss of $1.58 per share on $3.7 billion of sales, compared to a profit of $2.59 per share on $8.6 billion of revenue a year earlier. Despite the situation, Micron stock is up by 31% this year with a hope that demand has reached its lowest level.
General Mills Earnings Report
General Mills is all geared up to release its fourth-quarter fiscal-2023 results.
Federal Reserve Annual Stress Test on Largest Lenders
The Federal Reserve is due to release the results of its annual stress test of the nation’s largest lenders. This test plays a crucial role in determining how much banks should return to shareholders via stock buybacks and dividends, as it sets the capital cushion that banks must maintain to withstand a series of market and economic shocks. Banks with over $100 billion in assets come under the stress test while larger banks are required to participate annually and banks with assets ranging between $100 to $250 billion are required to participate every other year.
Conference Calls of McCormick, Nike, and Paychex
McCormick, Nike, and Paychex will be hosting conference calls to discuss their latest earnings report.
Economic News for the Week Ahead: June 28- July 2
GDP Growth Estimate Update
On Thursday, July 1, the Bureau of Economic Analysis (BEA) will release its third and final estimate of the first quarter’s gross-domestic-product growth. Analysts predict that there will be a 1.4% increase, a slight uptick from the second estimate released in May.
Constellation Brands’ Earnings Report
Constellation Brands will reveal its earnings for the first quarter of fiscal year 2024 on Friday, June 30.
Personal Income and Spending Report by the BEA
On Friday, July 2, the BEA will report personal income and expenditures data for May. It is expected that income will rise by 0.4% month over month, consistent with April data. Spending is predicted to rise by 0.3% following an increase of 0.8% in April. The core personal-consumption expenditures price index, which is the Federal Reserve’s preferred inflation gauge, is anticipated to show an unchanged year-over-year increase of 4.7% from April.
Chicago Business Barometer by the Institute for Supply Management
June’s Chicago Business Barometer will be released by the Institute for Supply Management (ISM) on Friday, July 2. Economists predict a reading of 44.2, nearly four points higher than May’s reading. Despite nine consecutive below-50 readings in the past, this would be reflective of a trend towards economic expansion.
