Inflation is set to top bills next week for the first full week of trading in June.
Investors will get the latest indication of how fast prices are rising in the United States when the Bureau of Labor Statistics releases its latest consumer price index on Friday.
That action will come as Federal Reserve policymakers rush to rein in themselves Inflation is near a 40-year high As interest rates rise, policies can dampen economic growth while stoking fears.
The emphasis on this possibility – and the possibility that the Fed’s rate hike campaign will continue beyond the next two meetings – has been Employment data for the month of May for Friday.
The Labor Department’s jobs report reflected a slight slowdown in the pace of employment from April, with 390,000 jobs added to the US economy in May, although overall job growth remains solid on a historical basis.
“Overall, the jobs report bolsters macroeconomic strength, but it also shows that the Fed is still on hold and may need to continue raising rates by 50 basis points for months to come,” said Charlie Ripley, senior investment analyst at Charlie Ripley. This was announced by Allianz Investment Management in a statement.
those fears All three main indicators were pointing down on Friday Another weekly loss following a temporary stern assembly In the volatile four trading days you miss the holiday.
“The vacancy gave assurances to investors that the recovery is continuing at full steam,” said Peter Easley, head of portfolio management at the Commonwealth Financial Network, in a note. “But the other side of this currency is that inflation will continue to be an issue due to strong consumer demand, wage pressures and higher commodity prices.”
Headline CPI is expected to increase in May but remain flat year-on-year. Economists expect the broader consumer price index to rise 8.3% in May, On par with April’s progress. Over the month, CPI is expected to increase by 0.7% compared to 0.2% last month.
The index’s core measure, which excludes volatile food and energy prices, likely slowed to 0.5% mom from 0.6% in April and 5.9% mom from 6.2% the previous month.
“Inflation eased somewhat in April and we need to see that followed by a further slowdown in May to underscore the notion that inflation has peaked,” said Greg McBride, Bankrate’s chief financial analyst. in an email comment. “By then, it will take several months of more moderate pricing for inflation to come down in any meaningful way.”
That sentiment was recently shared by federal policymakers, including Vice President Lyle Brainard. That’s what the second central bank official said on Thursday Denotes increments of half a percentage point Interest rates this month and next were weighted, along with continued tightening therefollowing.
“Right now it’s very difficult to see the issue being paused,” Brainard said in an interview with CNBC on Thursday. “We still have a long way to go to bring inflation down to our 2% target.”
Fedspeak will break silence as officials enter a lockdown ahead of their next policy-setting meeting, scheduled for June 14-15. It seems likely that following this discussion a half percentage point rate hike will be announced.
Aside from Friday’s CPI data, investors are expecting an economic calendar and modest gains next week, but volatility is likely to persist as Wall Street braces for tighter financial conditions and weighs on the US economy.
Meanwhile, government data shows a sharp contrast to what some business leaders see in the future.
Tesla (TSLA) CEO Elon Musk warned Archyde.com on Friday reported a “very bad feeling” regarding the economy and said the company is expected to cut regarding 10% of its jobs, Archyde.com reported on Friday, while management is also calling for “a halt to all hiring worldwide”.
Comments reflect comments from JPMorgan Chase (JPM) President Jimmy Dimon, the warned of a hurricane Pressure on US economy and weaker outlook for leading tech company Microsoft (MSFT), which was cited in more detail turbulence caused by currency fluctuations.
Not everyone is convinced that these warnings indicate that the economy is on the cusp of a turnaround. As Greg Dako, chief economist at EY-Parthenon, told Yahoo Finance on Friday, May’s jobs data suggests so The drumbeat of doom and gloom is ‘misleading’ In the context of a growing labor market.
“While the economy will undoubtedly slow in the coming months, anecdotal evidence of hiring freezes and layoffs at tech companies is misleading as overall job opportunities remain at record levels and layoffs are at record lows,” Dako said.
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economic calendar
Montag: No significant reports are planned for publication.
Tuesday: trade balanceApr (expected $89.2 billion, $108.9 billion in previous month); Reviews: Trade Balance; consumer creditApril (expected $32.750 billion, $52.435 billion mom)
Wednesday: MBA Mortgage Applicationsweek ending June 3 (-2.3% on the previous week); wholesale saleMoM, April (1.7% over the previous week); wholesale stockMoM, Final Apr (expected 2.1%, 2.1% over the previous week)
Thursday: Unemployment Complaint Ratesweek ending June 4 (200,000 in previous week); Ongoing Claimsweek ended May 28 (1.309 million over the previous week); Change of family in wealthfirst quarter ($529.7 billion); Bloomberg June United States Economic Survey.
Freitag: Consumer Price Index, MoMMay (0.7%, 0.3% mom); Kern-VPI, month for monthMay (0.5% expected, 0.6% mom); Consumer Price Index, YoYMay (expect 8.3% and 8.3% mom); Core consumer price index, year by yearMay (5.9% expected, 6.2% mom); Average real hourly earningsYoY, May (-2.6% MoM), real average weekly earningsYoY, May (-3.4% MoM), University of Michigan Feelings, June 1st (Expect 58.7 and 58.4 in the previous month); monthly household billMay ($308.2 billion MoM)
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earnings calendar
Montag
Before market opening: No significant reports are planned for publication.
After market close: cut (Coup)
Tuesday
Before market opening: JM Smucker Company (SJM), Chips barrel (CBRL), David Webster (Spiel)
After market close: No significant reports are planned for publication.
Wednesday
Before market opening: Campbell’s Soup (CPB)
After market close: five below (five)
Thursday
Before market opening: No significant reports are planned for publication.
After market close: DocuSign (TISSUE), repair seam (SFIX), Rent an amphitheater (Leasing)
Freitag
No significant reports are planned for publication.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Embed Tweet
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