Markets continued to rally last week. The Street is so focused on Fed interest rates getting cut that any bad economic news is actually “good news” (a justification for rates to be lowered).
Retail sales came in below expectations, but still had a nice rebound. Last month the April number came in at -0.2%. Expectations were for the May number were at +0.7%, with the actual number coming in at +0.5%.
Inflation data showed the trend is downward. Both the wholesale (PPI) and the consumer (CPI) data moved, on an annual basis, from +2.0% down to +1.8%.
Americans spent about $16 billion for their Dads on Father’s Day weekend (according to the National Retail Federation). The most popular gifts were expected to be greeting cards, special outings, clothing (can you say…tie), gift cards, books or CDs. (My family gave me two golf books.)
Pebble Beach hosted its 6th U.S. Open golf championship last week. Journeyman Gary Woodland won, taking home a cool $2,250,000. His caddie got 10% of that.
Focus of the week: It will come on Wednesday afternoon when the Fed’s fourth meeting of the year concludes. A statement will be released at 2pm, followed by a press conference with the Fed Chair. Inflation has been dropping the last couple of months. The Market has been itching for a rate decrease. Powell, two weeks ago, said they were paying attention. What will he say on Wednesday? If there’s a decrease, markets will be happy. If not, well… not so much.
Indicator focus: May’s housing starts (Tue); Fed meeting statement, Fed Chair press conference (Wed); the June Philly Fed index (Thu); and the May existing home sales (Fri).
Enjoy the week.
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