Equities ended mixed last week as the Nasdaq Composite rose 0.7%, while the S&P 500 index declined 0.1%, and the Dow Jones Industrial Average sank 1.7% . Stocks fell early in the week before rebounding sharply on Thursday after the Federal Open Market Committee raised the federal-funds rate by a quarter of a percentage point to 3.75% to 4%. The rate hike was widely anticipated on Wall Street.
The focus this week will remain on Washington, D.C., but shift from the Federal Reserve to the White House, where President Donald Trump is scheduled to host a summit with Chinese President Xi Jinping on Thursday. There is no shortage of topics that could be broached in the talks between the leaders of the two largest economies in the world. The countries have been in an economic detente for the better part of a year, with some tariffs still in effect, but no further escalation in the trade war.
Six S&P 500 companies will report results this week, including AutoZone on Tuesday, General Mills on Wednesday, and Costco Wholesale on Thursday.
Monday 9/21
The Federal Reserve Bank of Chicago releases its National Activity Index for August. Consensus estimate is for a -0.6 reading, roughly even with the July figure. Readings below zero suggest that the national economy is growing below historical trends, while positive values indicate above-average growth.
Tuesday 9/22
AutoZone and KB Home report quarterly results.
Wednesday 9/23
Cintas, General Mills, and Paychex release earnings.
S&P Global releases both its Manufacturing and Services Purchasing Managers' Indexes for September. Consensus estimates are for a 53.6 reading for the Manufacturing PMI and a 56 reading for the Services PMI. Both readings are roughly half a point less than the August data.
Thursday 9/24
Costco Wholesale and Darden Restaurants announce quarterly results.
President Donald Trump and Chinese counterpart Xi Jinping are scheduled to hold talks at the White House. They are expected to discuss tariffs, trade agreements, the Iran war, Taiwan, and artificial-intelligence safety. The leaders of the world's two largest economies met in May in Beijing, and have so far agreed to pause further escalating the trade war.
The Census Bureau reports new-home sales for August. Economists forecast a seasonally adjusted annual rate of 616,000 new single-family homes sold, slightly more than in July.
Friday 9/25
The Census Bureau releases the durable goods report for August. The consensus call is for a 0.3% decline in new orders for manufactured durable goods, following a 1.1% increase in July. Excluding transportation, new orders are expected to rise 0.6%, two-tenths of a percentage point more than previously.
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