The Week Ahead: Inflation Watch and Earnings Focus | June 24, 2023

As we approach the week of June 25, attention should be squarely on the PCE price index, a critical gauge for inflation. As key macroeconomic figures such as new home sales, consumer confidence, and durable goods data begin to roll out, it's anticipated that the personal spending and income numbers at the end of the week will take center stage. The Federal Reserve closely watches these numbers, and any uptick could be a signal of rising inflation, reminiscent of recent developments in the UK. With the market seemingly expecting no change from last month's figures, a surprise could trigger a reaction.

Turning to earnings, investors should be mindful of the performances of several companies, including #Carnival, #Micron Technology, General Mills, #Nike, and Constellation Brands. In particular, the spotlight will be on Nike, which has had a challenging year thus far. Although a low bar has been set for its top line this fiscal quarter, concerns around margin erosion and changes in direct-to-consumer strategy could potentially impact the bottom line. Finally, in the tech sector, the prospect of a public face-off between Elon Musk and Mark Zuckerberg has begun to gain traction. Such an event, while highly unorthodox, could result in retail money flowing into their respective stocks, underscoring the influence of the 'cult of personality' in the stock market. #CCL #MU #GIS #NKE #STZ #TSLA #META #MarketUpdate