The equity rally rolled on last week as the Federal Reserve delivered the expected quarter-point cut to the federal-funds rate and supplied a median projection of two more cuts by year end. All three major indexes closed at record highs on Friday, led by the Nasdaq Composite, which had its second consecutive weekly gain of more than 2%.
This week we will get an inflation update from the Bureau of Economic Analysis on Friday with the release of the personal consumption expenditures price index. While Federal Reserve Chairman Jerome Powell made it clear at last Wednesday's press conference that the flagging labor market is a more immediate concern, he also stated that there was no "risk-free path" for the Fed since inflation is still above its 2% target.
In the week ahead, a raft of Fedspeak will highlight the calendar, with speeches from newly installed Federal Reserve board governor Stephen Miran and Fed Chair Jay Powell on Monday and Tuesday, respectively, the biggest events for close Fed-watchers.
Other economic data coming this week include the S&P Global's Manufacturing and Services Purchasing Managers' Indexes, which will be released on Tuesday. The Census Bureau will report new-home sales on Wednesday, while the National Association of Realtors will report existing-home sales on Thursday.
Micron Technology, which hit a record high last week, will report earnings on Tuesday, while Costco Wholesale will announce its quarterly results on Thursday.
Monday 9/22
Firefly Aerospace reports quarterly results.
Tuesday 9/23
AutoZone and Micron Technology release earnings.
S&P Global releases both its Manufacturing and Services Purchasing Managers' Indexes for September. Consensus estimates are for a 52 reading for the Manufacturing PMI and a 53.9 for the Services PMI. This compares with readings of 53 and 54.5, respectively, in August.
Wednesday 9/24
Stitch Fix, Cintas and KB Home announce quarterly results.
The Census Bureau reports new-home sales for August. Expectations are for a seasonally adjusted annual rate of 650,000 homes sold, roughly even with the July data.
Thursday 9/25
Accenture, CarMax, Costco Wholesale, BlackBerry, and Jabil hold conference calls to discuss earnings.
The Bureau of Economic Analysis releases its third and final estimate of second-quarter gross-domestic-product growth. GDP is expected to have grown at a seasonally adjusted annual rate of 3.3%, unchanged from the BEA's second estimate.
The Census Bureau releases the durable goods report for August. The consensus call is for new orders for manufactured durable goods to decrease 0.5% month over month, following a 2.8% decline in July.
The National Association of Realtors reports existing-home sales for August. Economists forecast a seasonally adjusted annual rate of 3.95 million homes sold, slightly fewer than in July. The housing market continues to be in the doldrums, with existing-home sales near 15-year lows.
Friday 9/26
The Bureau of Economic Analysis releases the personal consumption expenditures price index for August. Consensus estimate is for a 2.7% year-over year increase, one-tenth of a percentage point more than in July. The core PCE price index, which excludes food and energy prices, is expected to rise 2.9%, matching the July figure.
