Key takeout
This week, market participants are spoofing volatility after the US launched an attack on three Iranian nuclear sites over the weekend.
President Donald Trump announced Saturday evening that Iran’s nuclear enrichment facility had been “expunged” by a strike. A full valuation of the damage was held on Sunday, but it is unclear how Iran will respond, and could lead investors to avoid dangerous assets such as stocks and cryptocurrencies. Meanwhile, crude oil prices are expected to rise amid concerns that supply could be destroyed if critical infrastructure is destroyed or transport lanes are blocked.
Meanwhile, after the Federal Reserve stabilized interest rates last week, Fed Chairman Jerome Powell will explain to lawmakers his views on the central bank’s economy when he gives regular testimony to Congress this week.
Central bankers were on their putt as they were worried that inflation would rekindle in the wake of tariffs. Personal Consumption Expenses (PCE) in May should be more informed when it is released later in the week. Investors will also be paying attention to the latest information on the latest developments in gross domestic product (GDP), housing market data and consumer trust.
Revenues from shoe retailers Nike (NKE), package delivery service FedEx (FDX), and Chipmaker Micron Technology (MU) are as businesses continue to assess the impact of tariffs on their operations. And the expected development of Tesla’s self-driving Robotakshi is likely to be in investors’ minds this week.
Read the bottom for a calendar of important events.
Powell’s Congress testimony follows fee decisions
Shortly after the Federal Reserve Congress last week, Powell testifies before Congress, providing lawmakers with 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 will also make their remarks in the week.
The hearing could offer several market-changing moments, particularly as President Donald Trump’s political allies may have the opportunity to burn Powell. Trump has criticized Powell for his reluctance to central banks to cut interest rates.
Trump points to a lower inflation rate as the reason for the Fed to go down inflation. Market Watchers will see another look at inflation on Friday with the release of its Personal Consumption Expense (PCE) report in May. PCE is important as it is the data the Fed considers when measuring whether inflation is back to its target rate of 2%. Inflation is declining, with PCE exceeding its April target rate.
Focused on Nike, FedEx and Micron revenue
Dow 30 member athletic apparel giant Nike will lead corporate revenue this week with an update scheduled for Thursday. The struggling shoemaker warned in his previous quarterly report that tariffs could affect the company, and that it would come because he reported a decline in revenue and revenue. However, analysts said the recent merger of Dick’s Sporting Goods (DK) and Foot Locker (FL) could help boost Nike’s sales.
As FedEx generated revenues scheduled for Tuesday, Stalwart warned of declining revenue and profits in previous quarterly reports. Investors are monitoring FedEx revenue, so they can provide a view on shipment volumes, providing insight into the health of the economy in general, particularly global trade.
Investors will also watch Micron Technology’s scheduled report on Wednesday. This comes after Chipmaker pledged a $200 billion investment to boost semiconductor production in the US.
Tesla (TSLA) plans to deploy its Robotaxi service in Austin, Texas on Sunday, June 22nd, but product updates have been delayed in the past. Hopefully Tesla’s Robotakshi will grab the headline and move stocks of the EV maker throughout the week, especially if the launch is delayed on Sunday.
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This week’s calendar
Monday, June 23rd
Existing home sales (May)
Federal Reserve speaker: Federal Reserve Governor. Christopher Waller, Michelle Bowman, Adriana Coogler, New York President John Williams, and Chicago Federal President Austan Gouldsby
Key revenue: Factset (FDS), Commercial Metals Company (CMC), KB Home (KBH)
Increased data to watch: S&P Flash Purchase Manager Index (PMI) (June)
Tuesday, June 24th
Consumer trust (June)
Federal Reserve Chairman Jerome Powell testifies before the House Financial Services Committee
Federal Reserve speakers: Michael Bar, John Williams, Federal Reserve Preparation Office for New York, Federal President Susan Collins, Cleveland Industry President Beth Hammack
Key revenue: FedEx, Carnival (CCL), TD Synnex (SNX), and Aerovironment (AVAV)
More data to watch: S&P Case Schiller Home Price Index (April)
Wednesday, June 25th
New home sales (May)
Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee
Key revenue: Micron, Paychex (Payx), General Mills (GIS), Jeffries (JEF)
Thursday, June 26th
Pending home sales (May)
Federal Reserve speaker: Federal Reserve Governor Michael Burr. Federal Presidents of Cleveland Beth Hammack and Richmond Fed Tom Birkin
Key revenue: Nike, McCormick (MKC), Walgreens Boots Alliance (WBA), AYI
More data to monitor: Gross Domestic Product (GDP) – Second revision (Q1), durable orders (May), early unemployment claims (week ending June 21), advanced US trade balances (May), advanced retail inventory (May), and advanced wholesale inventory (May)
Friday, June 27th
Personal Consumption Expenses (May)
Federal Reserve Speaker: Federal Reserve Governor Lisa Cook and Federal President Beth Hammack
Key revenue: Apogee Enterprises (Apog)
More data to watch: Consumer sentiment – Last (June)
One more
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