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What you need to know
- Investors expect the Federal Reserve to announce its decision this week on interest rate cuts.
- Jerome Powell’s remarks on Wednesday about the direction of the economy and interest rates will be a good indicator.
- The reports of inflation will be watched by investors. Retail sales, GDP and home sales.
- Micron Technology and Nike will be releasing their earnings statements, as well as FedEx.
Investors expect the Federal Reserve to announce their latest interest rate decision at its conclusion on Wednesday. Fed Chairman Jerome Powell is expected to answer media questions after the announcement and provide additional details about the economy.
The personal consumption expenditures report (PCE), which is released on Friday, will reveal whether or not inflation continues to exceed the Fed target. This week will also see revisions of the third quarter gross domestic product. Investors are interested in reports about retail sales, existing homes sales and consumer sentiment.
Nvidia (NVDA) partner Micron Technology (MU) will issue its quarterly earnings this week, with reports also coming from footwear leader Nike (NKE), business advisors Accenture (ACN), delivery giant FedEx (FDX), and cruise operator Carnival (CCL).
Monday, Dec. 16
- S&P flash U.S. PMI (December)
- Empire State manufacturing survey (December)
Tuesday, Dec. 17
- U.S. retail sales (November)
- Production and utilization of industrial capacity (November).
- Business inventories for November
- Homebuilder’s confidence index for December
- Federal Open Market Committee meeting starts
Wednesday, Dec. 18
- Building permits and housing starts (November).
- FOMC interest rate decision
- Federal Reserve chair Jerome Powell Press Conference
- Micron Technology, Lennar (LEN), General Mills (GIS) Toro TTC Earnings Report
Thursday, Dec. 19
- Initial claims for unemployment (Week ended Dec. 14, 2014)
- Gross domestic Product (second revision), Q3
- Philadelphia Manufacturing Survey December
- Existing home sales (November)
- U.S. Leading Economic Indicators (November)
- Accenture, Nike, Cintas (CTAS), FedEx, Paychex is also known as PAYX Earnings Report
Friday, Dec. 20
- Indice of personal consumption expenditures index for November
- Consumer sentiment (final) (December)
- Carnival Corporation Winnebago Industries WGO reports its earnings
Investors Pay Attention to Powell Remarks and Fed Rate Cut Decision
The Federal Reserve will meet for the last time in this year this week. Market observers are expected to closely follow the meeting. The Federal Open Market Committee is expected to approve a further interest rate cut, from the current level of federal funds rates at 4.50% up to 4.75%. The Fed would have cut rates for the third time in a row.
Market participants will closely follow the remarks made by Fed Chairman Jerome Powell after the meeting.
On Friday, investors will receive another crucial piece of economic information with the release the Personal Consumption Expenditures (PCEs) Inflation Index for November. This release follows other inflation measures that showed a rapid increase in prices during November. Prior to that, Thursday’s GDP revisions are expected to show whether or not the 2.8% rate of growth for the third-quarter was still maintained.
The week’s other notable economic statistics include November retail sales figures on Tuesday, existing-home sales on Thursday and consumer sentiment Friday.
Investors are waiting for reports on Micron Shoe Manufacturer and Shoemaker Nike
Micron Technology reported its quarterly earnings on Wednesday following an announcement that was made the previous week. The chipmaker would be receiving a Commerce Department grant of $6,2 billion for the manufacture of semiconductors within the United States as part of CHIPS and Science Act of 2022. Micron, a partner of Nvidia’s, nearly doubled revenue in the most recent quarter report. This exceeded analyst expectations.
Nike, the athletic apparel company, will publish its first annual report on Thursday. Elliott Hill has returned as CEO of Nike after retiring in 2020. Nike shares have dropped nearly 30% in value so far this calendar year. However, they’ve recovered a little bit over the past few months.
FedEx will report its Thursday earnings after lowering their earnings and revenue forecasts due to declining shipping volume. Accenture, a business management consultancy firm, will announce its results on Thursday due to an increased demand for Gen AI services.
General Mills report will shed light on consumer health after the cereal manufacturer suffered a sales drop during the quarter prior. Lennar’s earnings report is also released on the same date, as investors were disappointed by the company’s latest outlook.
Toro, the lawn mower manufacturer, is scheduled to report earnings on Tuesday. Carnival, the cruise liner company and Winnebago (a recreational vehicle maker) will be reporting on Friday.
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