The main event for investors this week will be the Federal Reserve’s interest rate setting committee’s monetary policy decision on Wednesday afternoon. Officials are expected to raise the central bank’s benchmark interest rate target range by a quarter of a percentage point, to 0.25% to 0.50%. It would be the Fed’s first hike since 2018.
This week’s revenue highlights will include
Vail Resorts and
Coupa Software Monday,
Lennar on Wednesday, and
General dollar Thursday.
American Express also hosts an Investor Day on Wednesday.
Economic data released this week will include the Bureau of Labor Statistics’ producer price index for February on Tuesday. Wholesale prices are expected to have climbed 10% year over year. Other February data releases include the Census Bureau’s Retail Sales on Wednesday and the Conference Board’s Leading Economic Index on Friday. There will also be housing market data on Wednesday and Friday.
Gitlab, and Vail Resorts release quarterly results.
The Labor Office Statistics publishes the producer price index for February. The PPI is expected to jump 10% year-over-year, while the core PPI, which excludes volatile food and energy prices, is expected to rise 8.7%. This compares to increases of 9.7% and 8.3%, respectively, in January. The 10% estimate would be the largest increase on record since 12-month data was first calculated in 2010.
The Census Bureau reports retail sales data for February. Spending on retail sales and food is expected to rise 0.3% month-over-month to $652 billion. Retail sales jumped 3.8% in January.
Mason Lennar reports first quarter fiscal 2022 results.
The Federal Open Markett The Committee announces its monetary policy decision. The FOMC is expected to hike the federal funds rate by a quarter of a percentage point to 0.25%-0.5%. Federal Reserve Chairman Jerome Powell virtually announced the move during his testimony before Congress in early March. This would be the first increase in the federal funds rate since December 2018 and most likely kicks off a year-long cycle of rate hikes as the Federal Reserve battles high inflation for four decades. Wall Street currently has forecast increases of seven quarter points for this year.
AgilentTechnologies, Coopers Co., and
Starbucks hold their annual general meetings.
American Express is hosting its Corporate Investor Day.
The national association of Home Builders releases its Housing Market Index for March. The consensus estimate is for a reading of 80, two points below the February figure. The index is below its peak from the end of 2020, but builders remain bullish on the housing market despite the twin headwinds of rising mortgage rates and supply shortages.
Accenture, Dollar General, FedEx and GameStop are hosting conference calls to discuss quarterly results.
The Bank of Japan announces its monetary policy decision. the
BOJ should leave its main short-term interest rate unchanged at -0.1%. The central bank is bucking the trend of the majority of countries to raise interest rates despite the highest inflation expectations ever recorded by Japanese consumers.
The national association of Realtors reports existing home sales in February. Economists forecast a seasonally adjusted annual rate of 6.1 million homes sold, down 400,000 from January.
The conference board publishes its main economic index for February. Expectations are for a reading of 120, roughly even with the January data. The Conference Board predicts a 3% growth rate for gross domestic product this year, above historical trends.
Write to Nicholas Jasinski at [email protected]