U.S. indexes finished the week mixed as the Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) declined, while the tech-centered Nasdaq Composite (NDAQ) and the Nasdaq 100 (NDX) rallied.
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This week, several Federal Reserve officials will be giving their opinions on the condition of the economy; investors will be closely watching them for signs that the FOMC committee members have changed their hawkish stance to accommodate the market’s convictions that interest rates will be cut as soon as September. Markets will also focus on the coming economic reports, which will help shape expectations for the Federal Reserve’s next moves.
Here are three economic events that could affect your portfolio this week. For a full listing of all upcoming economic events, check out the TipRanks Economic Calendar.
» April’s Retail Sales – Tuesday, 05/16 – This report is a leading indicator that gives important information about consumer spending, which has a significant impact on the GDP. The expectations now pencil in an increase in sales from last month’s decline, as the total number is lifted by the robust auto sales figures. However, Retail Sales may surprise on the downside, as indicated by consumer sentiment decline; this would add to the expectations of a rate pause in June and rate cuts later in the year.
» April’s Industrial Production – Thursday, 05/18 – The total volume of production in factories and the manufacturing industry is expected to be flat since March’s increase, as surveys continue to point to falling production. Meanwhile, lower oil prices limit the increases in production in the energy sector. A higher-than-expected reading may be regarded as inflationary, supporting the Fed’s hawkish stance.
» May’s Philadelphia Fed Manufacturing Survey – Thursday, 05/18 – The survey results serve as an index of manufacturing conditions, as well as a forecast of the all-important ISM Manufacturing Index. An above-expectations reading is seen as inflationary, pointing to higher-than-expected activity in the U.S. manufacturing sector.
