It will be a big week on the macroeconomic and monetary policy fronts. May inflation data and an interest-rate decision by the Federal Reserve will be the highlights.
The Bureau of Labor Statistics will report the consumer price index for May on Wednesday morning. The report will provide extra fodder for the Federal Open Market Committee, which meets on Tuesday and Wednesday. A decision on monetary policy is due at 2 p.m. ET on Wednesday, followed by a press conference with Fed Chair Jerome Powell half an hour later. Markets are overwhelmingly pricing in no chance of a change in the committee's federal-funds rate target, currently at 5.25% to 5.50%.
On Thursday, the BLS will report the producer price index for May. The Bank of Japan publishes its monetary policy decision on Friday.
The highlights on the earnings calendar this week will include Oracle on Tuesday, Broadcom on Wednesday, and Adobe on Thursday. Apple will also host its annual developers' conference on Monday, where it is expected to unveil its artificial intelligence strategy.
Monday 6/10
Apple's Worldwide Developers Conference kicks off with a keynote speech from CEO Tim Cook in Cupertino, Calif. The iPhone maker is widely expected to outline its strategy around artificial intelligence software. The conference runs through Friday, June 14.
Tuesday 6/11
Oracle reports fourth-quarter fiscal 2024 results.
The National Federation of Independent Business releases its Small Business Optimism Index for May. Expectations are for an 89.7 reading, even with the April figure.
Wednesday 6/12
Broadcom releases second-quarter fiscal 2024 earnings.
The Bureau of Labor Statistics releases the consumer price index for May. Consensus estimate is for the CPI to increase by 3.4% year over year, matching the April data. The core CPI, which strips out food and energy prices, is expected to rise 3.5%, one-tenth of a percentage point less than previously.
The Federal Open Market Committee announces its monetary policy decision. The FOMC is all but assured of keeping the federal-funds rate unchanged at 5.25% to 5.50%. The central bank will also release its quarterly Summary of Economic Projections. The March SEP showed a median projection of three quarter-point interest rate cuts this year. Traders are currently pricing in between one to two quarter-point interest rate cuts by year-end.
Thursday 6/13
Adobe announces second-quarter fiscal 2024 results.
A vote on Tesla CEO Elon Musk's $56 billion pay package is expected on Thursday.
The BLS releases the producer price index for May. Economists forecast a 2.5% increase for both the PPI and the core PPI. This compares with rises of 2.2% and 2.4%, respectively, in April.
Friday 6/14
The Bank of Japan announces its monetary policy decision. The BoJ is expected to keep its short-term rate target unchanged at 0 to 0.1%. In March, the central bank hiked rates for the first time in 17 years and ended its negative interest-rate policy that had been in effect since 2016.
The University of Michigan releases its Consumer Sentiment index for June. The consensus call is for a 73 reading, about four points more than previously. In May, consumers' expectations for inflation in the year ahead was 3.3%, the highest level in six months.
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