Wall Street week ahead: PCE index, flash services & manufacturing PMIs, Fed speakers’ comments to guide markets

Following last week’s historic interest rate cut by the US Federal Reserve, Wall Street in the week ahead will have plenty of economic data, including the Personal Consumption Expenditures price index, and S&P flash services & manufacturing PMIs, to look forward to.

The week will also see comments from US central bank speakers, including Fed chair Jerome Powell’s opening remarks at the US Treasury Market Conference.

Through the economic data and Fed speakers’ comments, investors will try to gauge the further path of the monetary policy.

Economic events

On September 23 (Monday), separate reports on S&P flash US Services PMI and S&P flash US Manufacturing PMI for September will be released.

On September 24 (Tuesday), separate reports on consumer confidence for September and S&P Case-Shiller Home Price Index (20 cities) for July will be released. Federal Reserve governor Michelle Bowman will also give a speech on the same day.

On September 25 (Wednesday), new home sales data for August will be declared. Federal Reserve governor Adriana Kugler will also give a speech on the same day.

On September 26 (Thursday), second quarter GDP data (second revision) will be released. Federal Reserve Chair Jerome Powell will give an opening speech on the same day.

On September 27 (Friday), data on personal income and personal spending for August, PCE (Personal Consumption Expenditures) index for August, and consumer sentiment (final) for September will be released.

Earnings

Following companies are due to report second quarter earnings in the week ahead — AutoZone, KB Home, THOR Industries, Stitch Fix, Micron Technology, Jefferies, Costco Wholesale, Accenture, Jabil, and CarMax.

US markets last week

US stocks ended on a mixed note on Friday after a strong rally in the previous session.

The Dow Jones Industrial Average rose 38.17 points, or 0.09 per cent, to 42,063.36, the S&P 500 lost 11.09 points, or 0.19 per cent, to 5,702.55 and the Nasdaq Composite lost 65.66 points, or 0.36 per cent, to 17,948.32.

For the week, the S&P 500 gained 1.36 per cent, the Nasdaq rose 1.49 per cent, and the Dow climbed 1.62 per cent.

In the bond market, the yield on the 10-year Treasury rose to 3.74 per cent from 3.72 per cent.

Gold hit a fresh record above $2,610 an ounce on the prospect of lower US borrowing costs, which makes the precious metal seen as a haven investment more attractive.

Oil prices were mixed on Friday.

West Texas Intermediate was flat at $71.92 per barrel, while Brent North Sea Crude fell 0.5 per cent at $74.49 per barrel.

In overseas stock markets, indices slumped across much of Europe after rising in Asia.