Coming soon: Fed rate decision, retail sales, housing data, FedEx earnings
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Fed Chairman Jerome Powell.
Key Points
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The Federal Reserve is expected to cut interest rates for the first time in four years on Wednesday, with Chairman Jerome Powell explaining the decision.
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This week, the sales figures for existing homes, the start of construction of new homes and the confidence of home builders were announced. The figures for retail sales will be announced on Tuesday.
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Earnings reports from FedEx, General Mills and homebuilder Lennar.
Economists expect the Federal Reserve to cut interest rates at its meeting this week. The announcement on Wednesday will be followed by a press conference with Chairman Jerome Powell.
Investors will also get a variety of economic data releases this week, including existing home sales, homebuilder confidence and housing starts. Retail sales data on Tuesday could also impact markets.
FedEx DeliveryFDX), General mills (GIS), Darden Restaurants (DRI), and homebuilder Lennar (LEN) are among the companies reporting their earnings figures this week.
Monday September 16th
Tuesday September 17
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Retail Sales (August)
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Federal Open Market Committee Meeting Begins
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Housing market index (September)
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Business inventories (July)
Wednesday September 18th
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Housing starts and permits (August)
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FOMC Interest Rate Announcement
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Federal Reserve Chairman Jerome Powell’s Press Conference
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General Mills reports profit
Thursday September 19th
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First Applications for Unemployment Benefits (Week Ending September 14)
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Leading Economic Indicators (August)
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Existing Home Sales (August)
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Philadelphia Fed Industry Survey (September)
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FedEx, Darden Restaurants, Lennar and Cracker Barrel Old Country Store (CBRL)report income
Friday September 20
Investors expect rate cut on Wednesday, plus Powell comments, retail sales report
Investors are expecting a long-awaited cut in borrowing costs this week when the Federal Reserve concludes its September meeting with an interest rate announcement at 2 p.m. ET on Wednesday.
After first raising rates in March 2022 to counter rising inflation, the Fed gradually raised its key federal funds rate to 5.25%-5.5%, a 23-year high, and held it there for more than a year. Now, with inflation easing and signs of softening labor markets, the Fed is expected to cut rates for the first time in four years.
Federal Reserve Chairman Jerome Powell will address the rate decision at a press conference at 2:30 p.m. ET. Investors will listen for clues about the Fed’s next monetary policy decisions and its view of the economy.
On Tuesday, August retail sales will give Fed officials a look at consumer spending, which accounts for about two-thirds of U.S. gross domestic product (GDP). Retail sales surprised in July as resilient consumers continued to defy economic forecasts.
Market analysts will also receive various data on the housing market this week, including sales of existing homes, the start of construction of new homes and the confidence of home builders.
FedEx and General Mills Report Quarterly Results
FedEx is set to report earnings on Thursday. The package delivery company beat analysts’ expectations in its previous earnings report, as CEO Raj Subramaniam predicted the company could continue its momentum through 2025.
General Mills’ report on Wednesday will show how the cereal maker is coping with what CEO Jeff Harmening called a “more challenging operating environment.” The maker of Betty Crocker cake mix and Blue Buffalo pet food missed sales estimates in its most recent quarterly report, and the company’s profit forecast came in lower than expected.
Financial updates on Wednesday from Cracker Barrel and Olive Garden parent Darden Restaurants will show whether restaurants still face headwinds. Lennar’s report on Thursday comes after the homebuilder forecast weaker-than-expected construction numbers in its previous quarterly report, indicating that demand for new homes remains weak.
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