Monday's trading: 5 things to know
The University of Michigan's index of consumer sentiment dropped in June to its lowest-ever recorded level, according to survey data released on Friday
Here are the key events taking place on Monday that could impact trading.
BIG-TICKET ITEMS REPORT: The Census Bureau is expected to announce at 8:30 a.m. Monday new orders for manufactured big-ticket items were unchanged in May from a month ago, after rising a seasonally adjusted 0.5% in April. If you factor out the transportation component, orders are anticipated to rise 0.3%, slightly below April’s increase of 0.4%. Orders for core capital goods, a closely watched proxy for business spending, are seen climbing 0.3% in May, slightly trailing April’s 0.4% pop.
An employee works on the 40 millionth Ford Motor Co. F-Series truck on the assembly line at the Ford Dearborn Truck Plant on January 26, 2022 in Dearborn, Michigan. (Photo by JEFF KOWALSKY/AFP via Getty Images / Getty Images)
PENDING HOME SALES REPORT: The National Association of Realtors is expected to announce at 10 a.m. Monday its index of pending home sales for May. Economists surveyed by Refinitiv are looking for a decline of 4%, the seventh straight monthly drop as buyers contend with soaring borrowing costs and record-high prices. That would leave the index at its lowest level in more than two years (since April 2020). Recall that a sale is pending when a contract to buy a previously owned home has been signed but not yet closed. It’s the latest sign of stress for the housing market, with sales of existing homes at a 2-year low and new home construction tumbling to a 13-month low. On Friday we found out that sales of new homes surged unexpectedly in May from a 2-year low, but that rebound is likely to be temporary with mortgage rates and home prices where they are.
A view of a townhome for sale in Huntington Beach, listed at $1,100,000 Friday, April 22, 2022. The median home price in Orange Count has reached $1 million for the first time in history. (Allen J. Schaben / Los Angeles Times via Getty Images / Getty Images)
NEGATIVE BECOMES A POSITIVE: The Dow, Nasdaq and S&P 500 recouped their losses from the prior week. Stocks tumbled earlier this month on concerns that the Fed could push the economy into a recession as it tightens monetary policy to combat inflation. Market indexes rebounded this week after bargain-hunters swooped in to buy cheap stocks and – in a paradoxical twist where bad news was good news – some worse-than-expected economic figures fueled investors' hopes that the Fed might become less hawkish.
STOCKS TO KEEP YOUR EYE ON AS JUNE COMES TO AN END
"It's clear that economic activity is cooling, which should cool down inflation. That together is rather positive," said Luc Filip, head of investments at SYZ Private Banking.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19403.947849 | +185.78 | +0.97% |
ALL 33 MAJOR US BANKS PASS FED'S ANNUAL 'STRESS TESTS'
CONSUMER SENTIMENT HITS BOTTOM: The University of Michigan's index of consumer sentiment dropped in June to its lowest-ever recorded level, according to survey data released on Friday. The drop highlighted the grim mood among Americans as inflation eats into their purchasing power and recession fears loom. The university also revised its May reading of inflation expectations over the next five to 10 years, lowering them to 3.1% from 3.3%. The revision fueled some optimism that the Fed wouldn't be as aggressive about hiking interest rates, analysts said, and added to market gains after the survey's release.
Norwegian Cruise Lines employees unload thousands of passengers. Within a matter of hours, the crew cleans/restocks, and loads up thousands of new passengers on the Norwegian Dawn, which is the newest and largest cruise ship in Boston. (Photo by Suza (Getty Images / Getty Images)
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CRUISING TO HIGHER REVENUE: Carnival shares jumped $1.20, or 12%, to $10.85 after the cruise-line operator reported it was on track for a nearly 50% increase in quarterly revenue compared with the first three months of the year. Its competitors also rallied, with Norwegian Cruise Line Holdings and Royal Caribbean both posting double-digit gains.