What to Expect in Markets This Week: May PCE Inflation, Powell Testimony, Fed Speakers, Earnings from Nike, FedEx, Micron

Introduction to the Week’s Economic Events

The Federal Reserve held interest rates steady last week, and now Fed Chair Jerome Powell will explain the central bank’s views on the economy to legislators. This week, Powell will deliver his regularly scheduled testimony to Congress, and other Fed officials are also expected to speak at various events.

Key Takeaways

• Federal Reserve Chair Jerome Powell will deliver testimony to Congress
• The May PCE report will show whether the Fed’s preferred measure of inflation continued its downward trend
• FedEx, Nike, and Micron are among the firms on the corporate earnings calendar
• Investors will also watch for updates on existing home sales, consumer confidence, and gross domestic product

Powell Congressional Testimony Follows Rate Decision

On the heels of last week’s Federal Reserve meeting, Powell will testify before Congress to give lawmakers an update on the central bank’s views on inflation and the economy. Powell is scheduled to testify before the House Financial Services Committee on Tuesday and the Senate Banking Committee on Wednesday. Several other Fed officials are also scheduled to deliver remarks during the week. The hearings could provide some market-moving moments, especially as political allies of President Donald Trump may take the opportunity to grill Powell.

Nike, FedEx, Micron Earnings in Focus

Athletic apparel giant Nike will lead corporate earnings this week with its scheduled update on Thursday. FedEx scheduled earnings on Tuesday come as the shipping stalwart warned of lower revenue and profits during its prior quarterly report. Investors will also be watching Micron Technology’s scheduled report on Wednesday, which comes after the chipmaker pledged a $200 billion investment to boost semiconductor production in the U.S.

This Week’s Calendar

• Monday, June 23: Existing home sales, Fed speakers, and key earnings from FactSet, Commercial Metals Company, and KB Home
• Tuesday, June 24: Consumer confidence, Federal Reserve Chair Jerome Powell testifies before the House Financial Services Committee, and key earnings from FedEx, Carnival, TD Synnex, and AeroVironment
• Wednesday, June 25: New home sales, Federal Reserve Chair Jerome Powell testifies before Senate Banking Committee, and key earnings from Micron, Paychex, General Mills, and Jeffries
• Thursday, June 26: Pending home sales, Fed speakers, and key earnings from Nike, McCormick, Walgreens Boots Alliance, and Acuity
• Friday, June 27: Personal Consumption Expenditures, Fed speakers, and key earnings from Apogee Enterprises

One More Thing

The U.S. has a lot of millionaires and is adding 1,000 more every day, more than anywhere else in the world. This is due to wealth creation in both the U.S. and around the globe. The number of millionaires is expected to continue growing as the economy expands and more people invest in the stock market.

Conclusion

In conclusion, this week is expected to be a busy one for economic events, with Fed Chair Jerome Powell’s testimony, corporate earnings, and various economic data releases. Investors will be watching closely to see how these events impact the markets and the overall economy. With the Fed’s decision to hold interest rates steady and the upcoming PCE report, investors will be looking for any signs of inflation or changes in the economy. As the U.S. continues to add more millionaires, it will be interesting to see how this affects the overall wealth gap and the economy as a whole.