Equities continued their recent strength, as all three major indexes rose more than 0.4%, buoyed by optimism over a peace deal to end the Iran war. The Dow Jones Industrial Average led the way, gaining 2.1% and closing at a record high on Friday. The S&P 500 extended its weekly winning streak to eight, the longest such stretch since December 2023.
This past Wednesday, President Donald Trump said that the U.S. was in the "final stages" of talks with Iran, while Secretary of State Marco Rubio said two days later that there was "slight progress." Wall Street is chasing the stock rally for now and giving peace a chance.
This shortened trading week brings an inflation update from the Bureau of Economic Analysis when it releases the personal consumption expenditures price index on Thursday. The same day, the Census Bureau will release the durable goods report as well as new-home sales data.
Despite a light earnings calendar, there are a few notable companies reporting quarterly results. HP Inc., Marvell Technology, and Salesforce will release earnings on Wednesday, followed by Costco Wholesale and Dell Technologies on Thursday.
Monday 5/25
Equity and fixed-income markets are closed in observance of Memorial Day.
Tuesday 5/26
AutoZone and Zscaler report quarterly results.
S&P Cotality releases its Case-Shiller National Home Price Index for March. In February, home prices rose at an annual rate of 0.7%, the slowest growth since June of 2023. "More than half of major U.S. metropolitan markets posted year-over-year price declines in February, signaling that the housing slowdown has broadened well beyond its Sun Belt origins," according to Nicholas Godec, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices.
The Conference Board releases its Consumer Confidence Index for May. Consensus estimate is for a 92 reading, roughly one point less than in April. Consumer sentiment remains near five-year lows despite a record-high stock market.
Wednesday 5/27
Agilent Technologies, Abercrombie & Fitch, Bank of Montreal, Bank of Nova Scotia, Dick's Sporting Goods, Dycom Industries, Heico, HP Inc., Marvell Technology, Nutanix, PDD Holdings, Salesforce, Snowflake, Synopsys, and U-Haul Holding announce earnings.
Thursday 5/28
American Eagle Outfitters, Autodesk, Best Buy, Burlington Stores, Canadian Imperial Bank of Commerce, Costco Wholesale, Dell Technologies, Dollar Tree, Gap, Hormel Foods, MongoDB, NetApp, Okta, Royal Bank of Canada, Toronto-Dominion Bank, and UiPath report quarterly results.
The Bureau of Economic Analysis releases the personal consumption expenditures price index for April. Economists forecast a 3.8% year-over-year increase, three-tenths of a percentage point more than in March. The core PCE price index, which excludes volatile food and energy prices, is expected to rise 3.3%, compared to 3.2% previously. If those estimates prove correct, it will be the highest annual change since May 2023 for the PCE price index, and the highest annual change since October 2023 for core PCE.
The BEA releases its second estimate of first-quarter gross-domestic-product growth. Consensus estimate is for a 2.1% seasonally adjusted annual growth rate, up from the BEA's 2% advance estimate from late April.
The Census Bureau releases the durable goods report for April. Expectations are for a 3.2% month-over-month jump in new orders for durable manufactured goods, after a 0.8% increase in March.
The Census Bureau reports new-home sales for April. The consensus call is for a seasonally adjusted annual rate of 663,000 new single-family homes sold, about 20,000 fewer than in March.
Friday 5/29
The Institute for Supply Management releases its Chicago Business Barometer for May. Economists forecast a 51.2 reading, two points more than in April. Readings above 50 indicate expansion in the economy, while less than 50 indicates contraction.