Week Ahead on Wall Street: Inflation Update

Estimated reading time: 4 minutes

Week Ahead on Wall Street

This week promises to be a pivotal one for financial markets, with attention squarely back on inflation. Investors will get a double dose of inflation data with the release of the May Consumer Price Index (CPI) and Producer Price Index (PPI). 

Consensus forecasts for the more closely-watched CPI are for a year-over-year increase of 2.5% for the headline number and 2.9% for the core reading, which excludes the more volatile food and energy components. 

The PPI, which measures inflation at the wholesale level, will also be closely watched for signs of price pressures in the production pipeline. 

Both indicators unexpectedly came in below estimates last month, so whether that trend continues or reverses will be of great importance to markets.

The fresh look at price pressures will be followed by a preliminary reading of the June University of Michigan Consumer Sentiment survey. It should offer a glimpse into how households are reacting to the ongoing uncertainty surrounding tariffs, and if anxieties are intensifying or easing. 

Feelings often drive behavior, and as a result, they can be a leading indicator of economic activity.

Economic and Earnings Calendar

Monday

• April Wholesale Inventories and Sales: Wholesalers often operate as an intermediary between manufacturers and retailers, serving as a key part of the goods supply chain. 
• May New York Fed Survey of Consumer Expectations: This is a measure of peoples’ expectations for inflation, jobs prospects, earnings growth, and more.

Tuesday

• May NFIB Small Business Optimism: This measures how small business owners feel about current and future economic conditions. 
• Earnings: JM Smucker (SJM)

Wednesday

• May Consumer Price Index: The CPI is one of the most popular indicators for tracking consumer price trends and is a marquee release for market watchers. 
• May Treasury Statement: This summarizes the U.S. federal government budget by tracking government revenues and expenditures.
• Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.
• Earnings: Oracle (ORCL)

Thursday

• May Producer Price Index: The PPI tracks price trends that producers face and is down significantly from its peak earlier in the cycle.
• Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Jobless claims have continued to show a labor market that remains strong despite having cooled.
• Earnings: Adobe (ADBE)

Friday

• June University of Michigan Consumer Sentiment: How consumers feel about economic conditions affect their spending habits. This survey places a particular focus on inflation and its trajectory.

Disclaimer
SoFi Securities (Hong Kong) Limited and its affiliates (SoFi HK) may post or share information and materials from time to time. They should not be regarded as an offer, solicitation, invitation, investment advice, recommendation to buy, sell or otherwise deal with any investment instrument or product in any jurisdictions. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
SoFi HK does not make any warranties about the completeness, reliability and accuracy of this information and will not be liable for any losses and/or damages in connection with the use of this information.
The information and materials may contain hyperlinks to other websites, we are not responsible for the content of any linked sites. The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi HK. These links are provided for informational purposes and should not be viewed as an endorsement. The risk involved in using such hyperlinks shall be borne by the visitor and subject to any Terms of Use applicable to such access and use.
Any product, logos, brands, and other trademarks or images featured are the property of their respective trademark holders. These trademark holders are not affiliated with SoFi HK or its Affiliates. These trademark holders do not sponsor or endorse SoFi HK or any of its articles.
Without prior written approval of SoFi HK, the information/materials shall not be amended, duplicated, photocopied, transmitted, circulated, distributed or published in any manner, or be used for commercial or public purposes.