Here Comes an Inflation Update. Plus Micron, Costco, AutoZone, Firefly, and More Stocks to Watch This Week.
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.
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.
Wholesale will announce its quarterly results on Thursday.
