U.S. Equity markets in the United States increased this week, as major averages ended their losing streaks. The Dow was able to end its eight-week losing streak the longest streak in more than 100 years. In the week, the Dow gained 6.2 percent, the S&P 500 increased 6.6 percent, while the Nasdaq rose 6.8 percent. The 10-year yield of the U.S. Treasury note fell to 2.74 percent, while Treasury bonds and other safe-haven assets gained momentum amid increasing fears of an economic recession. The price of crude oil rose this week, due to the tightening of global supply and a decline of U.S. inventories of crude. WTI crude oil finished on the high end of this week, trading at $115 per barrel, the highest price since the beginning of March. Prices for gas set a new records this week, with the national average cost for a gallon increasing to $4.60 as per AAA.
It’s a short trading week, as markets will end for Memorial Day holiday in the U.S. on Monday. The following Tuesday investors can look forward to the most recent update on home prices , with the publication of the Case-Shiller National Home Price Index for March. A variety of crucial economic indicators have been set for publication in the coming weeks, which include the PMI polls, consumer confidence as well as important changes on the state of labor. The reports on the labor market to be released next week include the most recent open positions and the latest survey on labor turnover (JOLTS), the ADP’s private sector payrolls report, as well as the Labor Department’s monthly pay-roll nonfarm report. Companies that report earnings comprise Salesforce, HP, Chewy, Gamestop, PVH, Broadcom and Lululemon and others.
Monday, May 30
- U.S. Market Holiday
Tuesday, May 31
- Salesforce ( CRM) and HP ( HPQ) publish the results of their respective businesses.
- S&P Case-Shiller National Home Price Index (March)
- Federal Housing Finance Agency Home Price Index (March)
- Dallas Fed Manufacturing Index (May)
- CB Consumer Confidence (May)
- Chicago PMI (May)
Wednesday, June 1
- Chewy ( CHWY), Gamestop ( GME) as well as PVH ( PVH) make earnings announcements
- S&P Global Manufacturing PMI (May)
- JOLTS Job Openings & Quits (April)
- Dallas Fed Services Index (May)
- Fed Beige Book
Thursday, June 2
- Broadcom ( AVGO), CrowdStrike ( CRWD) and Lululemon ( LULU) announce earnings
- ADP Private Sector Payrolls (May)
- Factory Orders (April)
Friday, June 3
- Nonfarm Payrolls Report (May)
- S&P Global Composite PMI – Final (May)
- ISM Non-Manufacturing PMI (May)
National Home Price Updates
The next day, the Standard and Poor’s will release the most recent monthly update of the Case-Shiller National Home Price Index that tracks the month of the gains in March’s home prices. This index is forecast to reach a new all-time record of 20.5 percent year-over-year after an increase of 20.2 percent rise in February. Prices for homes have been climbing across the country from mid-2020. The most significant price increases seen on the coasts of Phoenix, Tampa, and Miami.
Also , on Tuesday On Tuesday, on Tuesday, the Federal Housing Finance Agency (Freddie Mac) will release its National Home Price Index, monitoring price increases for single-family homes that have mortgages that are guaranteed by mortgage lenders. Housing prices are beginning to show signs of cooling as increasing mortgage rates and the lack of affordability continue to deter prospective home buyers. New and planned home sales saw significant declines in April as the number of homes sold dropping to their lowest levels since April of 2020.
Key Labor Market Reports
Market watchers will be able to look forward to several important updates that will gauge the health of the U.S. labor market. On Wednesday next week, it is expected that the Bureau of Labor Statistics (BLS) will release its monthly job openings as well as Labor Turnover Survey (JOLTS) report that measures hirings, openings and the separations that occurred during in April. The number of job openings was record 11.5 million as of March in the midst of an historically difficult labor market. Expectations for April project the slight decrease to 11.4 million job openings. The job loss rate was 3.3%, with turnover remaining at a high level during this Great Resignation and workers continue to search for more lucrative job openings.
ADP, a payroll provider ADP will publish their Monthly National Employment report monitoring the private sectors payrolls today. Consensus estimates call for a gain of 280,000 positions, following a smaller-than-expected gain of 247,000 jobs in April. According to the BLS will also publish the report on May Nonfarm Payrolls data on Thursday. The projections suggest a growth of 310,000 positions, as opposed to 428,000 jobs added for February and March. In April, the nonfarm payrolls were at 151.3 million, 0.8% below the high of 152.5 million reported at the end of February.