What to expect in the markets this week

Coming soon: PCE inflation, GDP revisions, Nvidia’s shareholder meeting, and earnings reports from Micron, FedEx, and Nike

Key Takeaways

• The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index, will be released on Friday. Inflation data and a host of other indicators will be closely watched throughout the week, with hopes that continued indications of sluggish economic activity could prompt the Fed to cut rates.

• Investors will gain more insight into the artificial intelligence landscape as investor Nvidia hosts its shareholder meeting and Micron Technology reports earnings.

• Other notable gains scheduled for this week include Nike, FedEx and Walgreens.

Market watchers have been looking for more signs that inflation is falling, hoping that a continued decline in price pressures will prompt the Federal Reserve to cut interest rates. They will get a major outcome on Friday with the release of the May Personal Consumption Expenditures (PCE) index, the Fed’s favorite inflation gauge.

Investors will also get updates on the artificial intelligence market when Nvidia (NVDA) hosts its annual shareholder meeting, Micron Technology (MU) releases earnings and Salesforce (CRM) holds its shareholders’ meeting.

Nike (NKE), FedEx Corp. (FDX), Walgreens Boots Alliance (WBA), General Mills (GIS) and Levi Strauss & Co. (LEVI) are among companies that will report their quarterly financial results this week.

Monday June 24

Tuesday June 25

• S&P CoreLogic Case-Shiller home price index (April)

• Consumer confidence (June)

• Federal Reserve Governments. Michelle Bowman and Lisa D. Cook provide remarks

• FedEx Corp. (FDX) and Carnival Corp (CCL) report income

Wednesday June 26

• Sales of new homes (May)

• Nvidia (NVDA) annual shareholders meeting

• Micron technology (MU), Paychex, Inc. (PAYX), General Mills, Inc. (GIS), Jefferies Financial Group (JEF) and Levi Strauss & Co. (LEVI) report income

Thursday June 27

• Initial unemployment claims (week ending June 22)

• Advanced International Trade in Goods (May)

• Advanced Wholesale Inventories (May)

• Advanced store inventories (May)

• Pending home sales (May)

• Durable goods orders (May)

• Gross Domestic Product – Third Revision (Q1)

• Sales team (CRM) shareholders meeting

• Nike, Inc. (NKE), Walgreens Boots Alliance (WBA) and McCormick & Company (MKC) report income

Friday June 28

• Price index of personal consumption expenditure (PCE) (May)

• Consumer confidence (June)

• Chicago Business Barometer (June)

• Richmond Fed President Tom Barkin delivers remarks

The story continues

Watching PCE for signs of improvement on the inflation front

Market watchers will be paying close attention to several data releases this week to see if they indicate a continued slowdown in economic activity and an easing of inflationary pressures.

Friday’s release of the Personal Consumption Expenditures (PCE) index for May will be particularly closely watched as it is the Fed’s preferred inflation gauge. Central bankers want to see more signs of inflation falling before cutting interest rates, which are at a 20-year high.

The April PCE reading showed prices rose 2.7% year over year, in line with expectations but still above the Federal Reserve’s target of 2%. Since then, weaker consumer price index (CPI) inflation for May has raised hopes that inflation will cool further.

The third revision of gross domestic product (GDP) for the first quarter will be published on Thursday. The most recent revisions saw economic growth cut to 1.3%.

Nvidia shareholder meeting, Micron earnings, FedEx, Nike Highlight corporate calendar

Investors will hear from some of the leading companies in the growing AI market this week.

Nvidia executives will host the chipmaker’s annual shareholder meeting on Wednesday. The meeting comes as the chipmaker’s stock price surge has pushed its market value to more than $3 trillion, as the company benefits from interest in its AI products.

Market watchers will hear from another chipmaker this week when Micron Technology releases its quarterly earnings report on Wednesday, following an upgrade from Bank of America on optimism about its AI products. AI will also likely be a topic at Salesforce’s shareholder meeting on Thursday. The software company delivered worse-than-expected second-quarter guidance despite its focus on driving growth through AI products.

Shipping giant FedEx is set to report earnings on Tuesday after announcing a $5 billion stock buyback program during its latest quarterly report. Shoemaker Nike’s earnings report Thursday follows weak expectations last quarter, even as the company prepares a marketing blitz during the upcoming Summer Olympics.

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