Where The Market Stands Monday - 6/22/24

The U.S. stock market is showing cautious optimism as we head into the trading week. Futures for the S&P 500 and Dow Jones Industrial Average are nudging upwards, suggesting a tentative positive outlook. European markets have opened with gains, while Asian benchmarks show mixed results. 

Major Forces At Work

Market sentiment will hinge on several pivotal events and data releases:

• Inflation Watch: All eyes will be on Friday's release of the Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge. With the previous PCE reading at 2.7% year-over-year, investors are hopeful for signs of cooling inflation, which could spur the Fed to consider interest rate cuts. 
• Federal Reserve Signals: Remarks from Fed officials, including San Francisco Fed President Mary C. Daly, on Monday and Federal Reserve Govs. Michelle Bowman and Lisa D. Cook will be closely monitored on Tuesday for hints about future monetary policy moves. Any indication of a shift towards dovish stances could trigger market reactions.
• Economic Indicators: Key data releases this week include the S&P CoreLogic Case-Shiller home price index, new home sales, and consumer confidence data. Thursday's third revision of Q1 GDP will also be crucial, especially after previous downgrades to 1.3%.

What To Watch For This Week

Traders can keep a close eye on several high-impact events and earnings reports:

• Nvidia's Shareholder Meeting: On Wednesday, Nvidia (NVDA) will host its annual shareholder meeting. Insights into the company's AI strategy and future outlook could drive significant market movements.
• Micron Technology Earnings: Also on Wednesday, Micron Technology (MU) will release its quarterly earnings. With recent upgrades from analysts on optimism for its AI products, this report will be critical for gauging the health of the semiconductor sector.
• Corporate Earnings: Major companies like Nike (NKE), FedEx (FDX), and Walgreens (WBA) are set to report earnings this week. Nike's report on Thursday follows weak guidance last quarter, and traders will be looking for signs of recovery. FedEx's earnings on Tuesday and its $5 billion stock buyback program will also be in focus.

Key events this week will shape the market, including the release of the PCE inflation index, Federal Reserve remarks, and major earnings reports from Nvidia, Micron Technology, Nike, and FedEx.

Neither Sean Kelland nor Stocks.News have positions in any of the stocks mentioned.