Coming Up On Monday - sg.uobkayhian.com
Transcript of Coming Up On Monday - sg.uobkayhian.com
MARKET RECAP at 4 pm ET
Stocks rose, with the S&P 500 hitting a
record high, boosted by a surge in Nike
and banking shares. Treasury yields
jumped as weaker-than-expected
inflation data eased worries about a
sudden tapering in stimulus by the
Federal Reserve. The dollar steadied,
while gold edged higher. Oil prices
surged on expectations of strong
demand.
Coming Up - On Monday
Federal Reserve Bank of New York
President John Williams is expected
to participate in a panel before the
virtual "Bank for International
Settlements Andrew Crockett Memorial
Lecture" event. Federal Reserve Bank
of Philadelphia President Patrick
Harker is scheduled to speak on
"Fintech Opportunities and
Responsible Innovation for Community
Banks" before virtual Federal Reserve
Innovation Office Hours Fireside Chat.
Federal Reserve Vice Chair for
Supervision Randal Quarles is
expected to speak on "Central Bank
Digital Currency" before the 2021 Utah
Bankers Association Annual
Convention, in Sun Valley, Idaho.
The Mobile World Congress, the
telecoms industry's biggest annual
gathering, begins. The event is
scheduled to end on July 1.
Mexico's trade balance data is
scheduled to be released.
PROMOTION
LIVECHAT-REUTERS GLOBAL
MARKETS FORUM
Mike Dolan, Reuters Editor at Large,
Finance & Markets, takes a look at the
major themes and key events to watch
in the week ahead. (0600 ET/1000
GMT) To join the conversation, click
here
KEY ECONOMIC EVENTS
Dallas Fed Manufacturing Business Index for Jun 1030 -- 34.90
Events ET Poll Prior
STOCKS Close %Chng Yr-high Yr-low Chng
DJIA 34438.58 239.99 0.71 35091.56 24971.03
Nasdaq 14360.39 -9.32 -0.06 14414.46 12397.05
S&P 500 4280.74 14.25 0.33 4271.28 3662.71
Toronto 20230.26 15.14 0.07 20295.18 15144.42
FTSE 7136.07 26.10 0.37 7217.54 6397.24
Eurofirst 1767.43 2.42 0.14 1776.51 1521.71
Nikkei 29066.18 190.95 0.66 30714.52 27002.18
Hang Seng 29288.22 405.76 1.40 31183.36 27079.24
TREASURIES Yield Price
10-year 1.5258 -12 /32
2-year 0.2700 0 /32
5-year 0.9263 -3 /32
30-year 2.1522 -42 /32
FOREX Last % Chng
Euro/Dollar 1.1940 0.08
Dollar/Yen 110.75 -0.10
Sterling/Dollar 1.3891 -0.22
Dollar/CAD 1.2297 -0.20
TR/HKEX RMB 97.80 -0.04
COMMODITIES ($) Price Chng % chng
Front Month Crude /barrel 73.99 0.69 0.94
Spot gold (NY/oz) 1779.20 4.02 0.23
Copper U.S. (front month/lb) 0.0430 -0.0001 -0.57
CRB Index Total Return 223.62 0.96 0.43
S&P 500 Price $ Chng % Chng
GAINERS
Nike Inc 153.79 20.53 15.11
Carmax Inc 127.30 7.87 6.59
Occidental Petroleum Corp 32.88 1.14 3.59
LOSERS
FedEx Corp 292.58 -10.36 -3.42
Waters Corp 336.90 -7.68 -2.23
Caesars Entertainment Inc 102.43 -2.30 -2.20
KEY RESULTS
No major S&P 500 companies are scheduled to report for the day.
Workers prepare an entrance for the Mobile World Congress (MWC) at Fira de Barcelona, in
Barcelona, Spain, June 25. REUTERS/Albert Gea
2
The Conference Board is expected to
show the consumer confidence index
inched up to 119.0 in June, from 117.2
in May on Tuesday. The ADP National
Employment Report on Wednesday is
expected to show private payrolls
rose 600,000 in June, after surging to
978,000 in May. On Thursday, the
Labor Department is scheduled to
release initial claims for state
unemployment benefits for the week
ended June 26. It is also expected to
release data for continued jobless
claims for the week ended June 19.
The Institute for Supply Management is
expected to show manufacturing PMI
rose to a reading of 61.0 in June,
following a reading of 61.2 in the
previous month. On the same day, the
Commerce Department is expected to
show construction spending rose
0.4% in May, after gaining 0.2% in
April. On Friday, the Labor Department
is likely to show nonfarm payrolls
increased to 675,000 in June, after
rising 559,000 in May. Private payrolls
are likely to have risen to 580,000 in
June, after rising 492,000 in the
previous month. The unemployment
rate is expected to have fallen to 5.7%
in June, from 5.8% in the earlier month.
Average hourly earnings likely dipped
to 0.3% in June from 0.5% in May. The
Commerce Department is expected to
release trade deficit data for May. It is
likely to have widened to $71.3 billion
compared with $68.9 billion in April.
The Commerce Department is
expected to show factory orders rose
1.5% in May, after falling 0.6% in April.
Micron Technology Inc is expected to
post third-quarter earnings on
Wednesday. The memory chipmaker is
expected to post a rise in quarterly
revenue as a pandemic-driven uptick in
the use of AI and 5G tech-supporting
devices drove demand for its chips.
Analysts will look out for commentary
about chip shortage and pricing.
Walgreens Boots Alliance Inc is set
to report its third-quarter results on
Thursday when investors will focus on
any comments from the company
regarding benefit from COVID-19
vaccine administration, and its 2021
forecast.
Alimentation Couche-Tard Inc is
expected to post fourth-quarter
earnings on Wednesday. The
Canadian convenience store chain is
likely to post an increase in revenue,
boosted by strong demand for tobacco
products, beverages and groceries.
Profit is expected to fall on weak
margins in its fuel business. Investors
will look out for comments on current-
quarter trends and its acquisition plans.
On Wednesday, top U.S. independent
oil producer ConocoPhillips is
scheduled to provide a mid-year look at
its operations after closing the
acquisition of Concho Resources Inc.
Investors will look for clues to dividends
and divestitures.
Citigroup Inc will host a virtual
conference on Wednesday to look at
trends and disruption in politics,
economics, finance and innovation.
Speakers include Citi's senior
management team, economists,
strategists and industry experts.
Statistics Canada is expected to
release the country's gross domestic
product (GDP) data on Wednesday.
The country's GDP is likely to have
fallen to 0.9% in April, after a 1.1% rise
in March. Producer prices data for
May is expected to be released on
Wednesday. The country's trade
balance, manufacturing PMI and
building permits data for May are
scheduled for release on Friday.
Brazil's jobless rate for April is
expected to be released on
Wednesday. The country's IGP-M
Inflation Index for June is scheduled
to be released on Tuesday, the
country's trade balance and
manufacturing PMI for June are due
on Thursday, and industrial output for
May on Friday.
Coming Up - Week Ahead
A file photo of job seekers and recruiters gathering at TechFair in Los Angeles, California, U.S.,
March 8, 2018. REUTERS/Monica Almeida
3
The S&P 500 ended the week at
record high, lifted by Nike and several
banks, while weaker-than-expected
inflation data eased worries about a
sudden tapering in stimulus by the
Federal Reserve. Nike surged to an all-
time high and closed up 15.11% after
the sneaker maker forecast fiscal full-
year sales ahead of Wall Street
estimates, helping the Dow lead
among the three main indexes. Bank
of America jumped 2.23% and Wells
Fargo gained 2.67% after the Fed
announced big banks have cleared
stress test and will no longer face
pandemic-related restrictions on buying
back stock and paying dividends. The
S&P 500 financials index rose 1.25%
to 614.76. Investors were also girding
for potentially the biggest trading event
of the year, as FTSE Russell
reconstitutes its indexes which could
reflect a wild trading year marked by
the pandemic and a "meme" stock
craze. The Dow Jones Industrial
Average was up 0.71% at 34,438.58
points, while the S&P 500 gained
0.33% to 4,280.78. The Nasdaq
Composite dropped 0.06% to
14,360.39. For the week, the S&P rose
2.74%, the Dow added 3.44% and the
Nasdaq gained 2.35%.
The yield of the benchmark 10-year
Treasury jumped above 1.50% to
close out a week in which yields
notched their largest weekly gains
since March. The moves higher came
after the Federal Reserve's main
inflation reading rose 3.45%, the most
in 29 years, as supply constraints and
increased demand for services helped
lift prices in May. Overall, consumer
spending remained flat last month,
following an upwardly revised 0.9%
jump in April. The pace of inflation will
not likely be enough to prompt the Fed
to deviate from its plan to raise interest
rates twice in 2023 or to begin tapering
its support of the bond market, analysts
said. 10-year notes fell 12/32 to yield
1.5258%. 30-year bonds were 1-11/32
lower, yielding 2.1529%.
The U.S. dollar steadied after tamer-
than-expected producer price inflation,
with investors continuing to evaluate
whether that the Federal Reserve will
act sooner to snuff out inflation if it
persists. The dollar index against a
basket of currencies was 0.03% lower
at 91.79, after dropping to 91.524. The
British pound fell 0.23% on the day to
$1.3890, weakening further a day after
the Bank of England made no changes
to monetary policy.
Oil prices climbed to their highest since
October 2018, putting both
benchmarks up for a fifth week in a row
on expectations demand growth will
outstrip supply and OPEC+ will be
cautious in returning more crude to the
market from August. "Crude prices
rallied on an improving demand outlook
and over expectations the market will
remain tight as OPEC+ is likely to only
deliver a small boost to output at the
July 1st ministerial meeting," said
Edward Moya, senior market analyst at
OANDA. Brent futures rose 0.74% to
$76.12 a barrel, while U.S. crude rose
0.94% to $73.99 a barrel. Brent hit
$76.18 and U.S. crude touched $74.05,
the highest levels since October 2018,
earlier in the session.
Gold edged higher, after stagnant U.S.
consumer spending tempered bets for
early monetary policy tightening by the
Federal Reserve, setting bullion on
track for its first weekly gain in four.
"Gold has benefited from the lower-
than-expected inflation print as
concerns at the margin have eased
over a sooner-than-expected timetable
for tapering," said Suki Cooper, an
analyst at Standard Chartered. The
$1,770 per ounce level is a support in
the near term, Cooper said, with
resistance at the 100-day moving
average. Spot gold inched 0.22%
higher to $1,779.06 per ounce. U.S.
gold futures were 0.14% higher at
$1,779.10 an ounce.
Market Monitor
A file photo of the back of the the "Fearless Girl" statue pictured at the New York Stock Exchange
building in Manhattan in New York City, New York, U.S., January 28, 2021. REUTERS/Mike Segar
4
Top News
Amazon, Google face formal fake
review inquiry in Britain
Britain's competition regulator started a
formal investigation into whether
Amazon and Google may not have
done enough to prevent or remove fake
reviews. Along with regulators in the
United Sates and the European Union,
the Competition and Markets Authority
(CMA) has stepped up its scrutiny of
big tech firms in recent years. The
British regulator said it will gather more
information to decide if the firms may
have broken consumer law by taking
insufficient action to protect shoppers.
Both Google and Amazon said they
were continuing to assist the CMA. The
regulator said it was also concerned
that Amazon's systems had failed
adequately to prevent and deter some
sellers from manipulating product
listings, through for example co-opting
positive reviews from other products.
The CMA said it has not reached a
view on whether Amazon and
Alphabet's Google have broken the
law. However, if it concludes they have
broken consumer protection law, it can
take enforcement action ranging from
securing formal commitments to
change the way they deal with fake
reviews or escalating to court action.
Nike shares hit record high as
sales get post-lockdown boost
Shares of Nike surged over 15% to a
record high after the sportswear giant
forecast full-year sales of more than
$50 billion, riding on pent-up demand
for sneakers and athletic gear from
U.S. shoppers. The company's fourth-
quarter revenue also nearly doubled,
topping $12 billion for the first time and
overshadowing a weaker-than-
anticipated performance in its fast-
growing China market. A rapid
vaccination drive and the easing of
restrictions in Europe and the United
States have encouraged people to go
on a shopping spree, unleashing
demand for expensive items, including
sneakers. Those factors helped Nike
more than make up for weak China
sales, which were hit by calls to boycott
global brands for their comments
around forced labor in Xinjiang. At least
13 brokerages raised their price
targets, with Stifel's $213 target the
highest on the Street. The median
target is $175. Nike's shares ended
15.11% higher at $153.79, after hitting
an all-time high of $154.18 earlier.
Biden's EV charging push boosts
established automakers taking on
Tesla
President Joe Biden's plan to spend
billions on charging networks in the
U.S. could encourage more Americans
to buy electric vehicles, giving General
Motors and Ford Motor much needed
fuel in the battle against Tesla. The
bipartisan $1.2 trillion infrastructure
framework, includes $7.5 billion
spending plans to boost EV charging
stations. However, details of the plan
still need to be finalized and any bill
must be passed by both houses of
Congress. The funds are half of $15
billion Biden had sought for EV
charging stations. In a 2018 report,
consultancy firm McKinsey estimated
that the United States will need about
$11 billion of capital investment by
2030 to deploy the 13 million chargers
needed for the country's EVs.
"Effective legislation should include
investments in charging infrastructure,
particularly in urban areas and along
highway corridors, that will help give
consumers even more confidence to
buy electric," GM said in a statement.
Meanwhile, a bipartisan $1.2 trillion
U.S. infrastructure agreement would
boost the rollout of electric buses, but
falls way short of what transit experts
and school districts say is needed to
upgrade the country's bus fleet to
battery power. To read more, click
here
Branson's Virgin Galactic cleared for
takeoff as space tourism race heats
up
Billionaire Richard Branson's
spaceship company Virgin Galactic
said it received approval from the U.S.
aviation safety regulator to fly people to
space, turning up the pressure on rivals
in the nascent and expensive space
tourism sector. The approval from the
Federal Aviation Administration (FAA)
comes at a critical time for Branson as
his space venture faces off against
Amazon.com founder Jeff Bezos' Blue
Origin and Tesla boss Elon Musk's
SpaceX. Bezos, Branson and Musk
A file photo of the logo of Nike sportswear maker seen at a company's store at Tbilisi Mall in Tbilisi,
Georgia, April 22, 2016. REUTERS/David Mdzinarishvili
5
have been investing billions of dollars
on their rocket startups. Branson, who
is reportedly flying to space himself in a
bid to beat rival billionaire Bezos to the
final frontier, received the green light
just a month after a successful test
flight. The company has said it has
more than 600 reservations for 90-
minute flights that include several
minutes of weightlessness, priced at
$250,000 a ticket.
Facebook rejects talks with
Australia publisher, may test
online law
Australia's competition watchdog is
looking into a claim that Facebook
refused a publisher's request to
negotiate a licensing deal, the regulator
told Reuters, setting the stage for the
first test of the world's toughest online
content law. The Conversation, which
publishes current affairs commentary
by academics, said it asked Facebook
to begin talks as required under new
Australian legislation that requires the
social media firm and Google to
negotiate content-supply deals with
media outlets. The knockback could
present the first test of a controversial
mechanism unique to Australia's effort
to claw back advertising dollars from
Google and Facebook: if they refuse to
negotiate licence fees with publishers,
a government-appointed arbitrator may
step in. In a statement responding to
Reuters questions, Facebook's head of
news partnerships for Australia,
Andrew Hunter, said the company was
"focused on concluding commercial
deals with a range of Australian
publishers".
U.S. Supreme Court curbs
TransUnion 'terrorist list' lawsuit
The U.S. Supreme Court narrowed the
scope of a class action lawsuit against
TransUnion in which thousands of
people sought damages after the credit
reporting company flagged their names
as matching some on a government list
of suspected terrorists and drug
traffickers. The justices ruled in
TransUnion's appeal of a lower court
decision that had upheld a jury verdict
against the Chicago-based company in
the lawsuit and had ordered it to pay
$40 million in damages. The 5-4
decision, authored by conservative
Justice Brett Kavanaugh, stopped short
of tossing out the jury verdict, but found
there was insufficient evidence to show
that all of the plaintiffs had been
harmed by TransUnion's conduct,
meaning the amount of damages will
be reduced. There were 8,185 class
members in the litigation whose names
matched ones on the government list.
At trial it was established only that
TransUnion had revealed that
information publicly on 1,853 of them.
The other 6,332 did not experience a
"concrete injury," thus lacked the
necessary legal standing to sue,
Kavanaugh wrote.
Panasonic sells Tesla
stake for $3.6 billion
Panasonic sold its stake in electric car
maker Tesla for about $3.61 billion in
the year ended March, a spokesperson
for the Japanese company said. The
sale comes as the conglomerate is
seeking to reduce its dependence on
Tesla and raise cash for growth
investment. Panasonic's battery
business is dominated by Tesla, but
the two firms have had a tense
relationship at times. Panasonic bought
1.4 million Tesla shares at $21.15 each
in 2010 for about $30 million. That
stake was worth $730 million at the end
of March 2020. The shares have
gained almost seven fold since then
and closed up 3.5% at $679.82 apiece
on Thursday. The stake sale will not
affect the partnership with Tesla, the
Panasonic spokesperson said, and
was made as part of a review of
shareholdings in line with corporate
governance guidelines.
U.S. pauses distribution of Lilly's
COVID-19 antibody combination
therapy
U.S. health officials paused the
distribution of Eli Lilly's COVID-19
antibody cocktail therapy as it failed to
show effectiveness against the
coronavirus variants that were first
identified in Brazil and South Africa.
The decision by the U.S. Department of
Health and Human Services (HHS) is
based on laboratory analyses that
showed Lilly's dual antibody therapy -
bamlanivimab and etesevimab - was
not active against either variants. The
officials also paused the distribution of
etesevimab alone to pair with existing
supply of bamlanivimab. The HHS also
said Regeneron's antibody therapy,
REGEN-COV, and GlaxoSmithKline
and partner Vir Biotechnology's
sotrovimab are likely to be effective
against the variants.
Rockwell Automation to buy
Plex Systems for $2.22 billion
Rockwell Automation said it would buy
business software maker Plex Systems
for $2.22 billion in cash, as the U.S.
industrial automation equipment maker
looks to boost its revenue from cloud
offerings. An increasing number of
organizations have been automating
their operations during the COVID-19
pandemic and managing their
manufacturing, supply chain and
finances remotely. Plex's platform
helps customers to connect, automate,
track and analyze their operations and
supply chains, Rockwell said. "The
acquisition will also accelerate our
software revenue growth and
strengthen our annual recurring
revenue streams," Rockwell Chief
Executive Officer Blake Moret said in a
statement.
Mister Car Wash rises 26% in NYSE
debut, valued at $5.6 billion
Mister Car Wash was valued at $5.6
billion in its New York Stock Exchange
debut after shares of the Tucson,
Arizona-based company opened 26%
above their offer price. The company's
stock opened at $18.9 per share, up
from its initial public offering (IPO) price
of $15 per share. The company sold
37.5 million common shares along with
some existing investors. The IPO was
priced at the low end of a previously
announced range for a total of $562.5
million. Mister Car Wash, which
operates 344 car washes across 21
states, reported net revenue of $595
million for the 12 months ended March
31, its IPO prospectus showed. The
company’s shares ended 40.60%
higher at $21.09.
6
Only half time in public debt match:
Mike Dolan
Nothing is decided at half time. That
appears to be as true for post-
pandemic world economic policy and
financial markets as for the European
football championships now underway.
Approaching mid-year in 2021,
investors are still not convinced how
the game will end up. The stakes are
sky high. Having spent trillions of
dollars supporting locked-down
economies through the COVID-19
shock, government debts have
mounted to new records. But these
have been kept affordable by central
banks flooring borrowing costs, itself a
situation many see as only truly
durable if re-emergent inflation
subsides again over time. Rich
countries' commitment to continue
investment spending on infrastructure
and a "green transition" after the
pandemic seems mainly to avoid a
repeat of premature fiscal austerity,
slow growth and flatlining wages after
the banking crash 12 years ago.
Oil prices soar even as consumption
remains below trend: Kemp
Global oil consumption is set to return
to pre-pandemic levels by the first
quarter of 2022, driven by a strong
expansion in global manufacturing and
freight transport as well as the gradual
re-opening of major economies.
Booming consumption from miners,
manufacturers, shipping and trucking
firms, as well as private motorists, is
expected to offset the continued loss of
jet fuel consumption from quarantine
restrictions on passenger aviation.
Global liquids consumption (including
biofuels) is forecast to reach 100.6
million barrels per day (bpd) in March
2022, according to the U.S. Energy
Information Administration (EIA). For
the first time since the onset of the
epidemic, consumption will surpass the
level for the corresponding month in
2019 ("Short-term energy outlook",
EIA, June 8).
A man takes pictures next to statues of former Chinese Communist leaders Ren Bishi, Zhou Enlai, Mao Zedong, Zhu De and Liu Shaoqi at the
Museum of the Communist Party of China that was opened ahead of the 100th founding anniversary of the Party in Beijing, China, June 25.
Column
REUTERS/Thomas Peter
7
CANADA COMING UP - ON MONDAY Market Monitor
Top News
Canada court rejects Huawei CFO
push for publication ban on new
evidence in U.S. extradition case
Huawei Chief Financial Officer Meng
Wanzhou's (pictured) request for a
publication ban on new evidence her
legal team received from HSBC has
been denied by a Canadian court in her
U.S. extradition case, a lawyer involved
in the case said. Meng, 49, was
arrested in December 2018 for
allegedly misleading HSBC about
Huawei Technologies Co's business
dealings in Iran, causing the bank to
break U.S. sanctions. She faces a
Canadian government extradition
attempt on charges of bank fraud in the
United States. Canadian prosecutors
had fought her request for a publication
ban on documents relevant to her case
received from HSBC via a court in
Hong Kong. The documents were
provided on the condition that Meng
make a reasonable effort to keep them
private. The British Columbia Supreme
Court on Thursday dismissed the
request, said Daniel Coles, the legal
counsel representing a consortium of
media outlets - including Reuters - who
argued against the publication ban.
The reasons for the denial were not
made public, pending issues relating to
a previous publication ban, Coles said.
Prosecutors representing the Canadian
government had argued that "to be
consistent with the open court principle,
a ban must be tailored" and details
should be selectively redacted from the
public, rather than the whole
documents.
Canada says COVID-19 Delta variant
could cause greater than expected
surge
Canada projects COVID-19 infections
will decline rapidly over the next two
months, but the more contagious Delta
variant risks causing a greater-than-
expected resurgence of cases later this
year, public health officials said.
Canadian provinces are opening up
businesses again as vaccinations
advance rapidly. More than 76% of
eligible Canadians have had at least a
first dose, and more than 26% have
had a second, Prime Minister Justin
Trudeau said. "Because people got
vaccinated, because people stayed at
home and followed public health rules,
the current situation is rather
encouraging," Trudeau told reporters,
commenting on the projections. But
Theresa Tam, the country's chief
health officer, said there needed to be
a controlled and gradual reopening
because a resurgence is possible if
reopening businesses increases
contact rates by 50% or more. The
Delta variant is driving up cases again
in Britain, Tam noted, urging further
vaccine uptake by Canadians, which
she said could help counteract the
effect of the variant.
TSE's S&P/TSX composite Price C$ chng % chng
GAINERS
ARC Resources Ltd 10.52 0.52 5.20
Canada Goose Holdings Inc 53.74 1.70 3.27
Badger Infrastructure Solutions Ltd
37.68 1.17 3.20
Capstone Mining Corp 5.31 0.14 2.61
Brookfield Business Partners LP 57.93 1.40 2.48
LOSERS
Sunopta Inc 14.87 -0.95 -6.01
Westport Fuel Systems Inc 6.66 -0.35 -4.99
BlackBerry Ltd 14.93 -0.72 -4.60
OrganiGram Holdings Inc 3.63 -0.17 -4.35
Village Farms International Inc 13.34 -0.46 -3.33
The Toronto Stock Exchange's S&P/
TSX composite index ended up
0.07% at 20,230.26.
BlackBerry fell 4.60%, despite the
Canadian security software supplier
beating Wall Street estimates for
quarterly revenue on Thursday.
The energy sector rose 0.24% to
141.87.
The materials sector fell 0.38% to
316.94.
The U.S. dollar was 0.20% lower
against its Canadian counterpart at
C$1.2297.
No major events are scheduled for the
day.
REUTERS/Mark Blinch
REUTERS/Jennifer Gauthier
8
WEALTH NEWS ECONOMIC DATA
U.S. consumer spending takes breather
amid shortages; inflation rises
U.S. consumer spending paused in May as
shortages hurt motor vehicle purchases, but
the supply constraints and increased
demand for services helped to lift prices, with
the Federal Reserve's main inflation
measure rising by the most in 29 years. The
unchanged reading in consumer spending,
which accounts for more than two-thirds of
U.S. economic activity, followed an upwardly
revised 0.9% jump in April, the Commerce
Department said. The personal consumption
expenditures (PCE) price index, excluding
the volatile food and energy components,
increased 0.5% after advancing 0.7% in
April. In the 12 months through May, the so-
called core PCE price index shot up 3.4%,
the largest gain since April 1992. The
University of Michigan consumer survey's
one-year inflation expectation dropped to
BIPARTISAN INFRASTRUCTURE BILL
Biden stands by 'two-track' bill process, despite Republican dismay
U.S. President Joe Biden spoke with Democratic Senator Krysten Sinema on the bipartisan infrastructure agreement, the
White House said, and reiterated his support for a "two-track" legislation process that includes a second reconciliation bill.
RENEWABLE FUEL STANDARD REQUIREMENTS
U.S. Supreme Court backs refineries in biofuel waiver dispute
The U.S. Supreme Court made it easier small oil refineries to win exemptions from a federal law requiring increasing levels of
ethanol and other renewable fuels to be blended into their products, a major setback for biofuel producers.
WALL STREET WEEK AHEAD
As rally in U.S. stocks rolls on, signs of caution grow
The S&P 500 shook off concerns about a more hawkish Federal Reserve to post a record high this week, but activity in some
areas of the market indicates concern over potential volatility ahead of key economic data and corporate profit reports.
U.S. SHARE SALE
Chinese firm Didi's $4 billion IPO books covered on first day of bookbuild -sources
Chinese ride-sharing giant Didi Global Inc's $4 billion initial public offering (IPO) received enough investor demand to clinch its
targeted price range, vindicating a lowering of valuation expectations, people familiar with the matter said.
PANDEMIC BILL
U.S. senators try again with $3 bln pandemic bill -sources
The leaders of the U.S. Senate Foreign Relations Committee are preparing a $3 billion bipartisan bill to prepare for the next
global health crisis, congressional aides said, trying again to pass a pandemic plan after similar efforts stalled last year.
KASHKARI ON INFLATION
Fed's Kashkari says inflation will be temporary, workers will return
Minneapolis Federal Reserve President Neel Kashkari said he expects recent high inflation readings will not last and
Americans will return to the labor market in large numbers in the fall.
4.2% in June from a decade-high 4.6% in May. Personal income fell 2.0% after
declining 13.1% in April. Wages gained 0.8% after rising 1.0% in April.
9
ON THE RADAR
Events ET Poll Prior
Tue: Monthly home price mm for Apr 0900 -- 1.4%
Monthly home price yy for Apr 0900 -- 13.9%
Monthly Home Price Index for Apr 0900 -- 324.9
Caseshiller 20 mm SA for Apr 0900 1.7% 1.6%
Caseshiller 20 mm NSA for Apr 0900 -- 2.2%
Caseshiller 20 yy for Apr 0900 14.5% 13.3%
Consumer Confidence for Jun 1000 119.0 117.2
Texas Service Sector Outlook for Jun 1030 -- 40.0
Dallas Fed Services Revenues for Jun 1030 -- 23.9
Wed: ADP national employment for Jun 0815 6,00,000 9,78,000
Chicago PMI for Jun 0945 70.0 75.2
Pending Homes Index for May 1000 -- 106.2
Pending sales change mm for May 1000 -1.0% -4.4%
Thu: Challenger layoffs for Jun 0730 -- 24,586
Markit Manufacturing PMI Final for Jun 0945 -- 62.6
Construction spending mm for May 1000 0.4% 0.2%
ISM Manufacturing PMI for Jun 1000 61.0 61.2
ISM Manufacturing Prices Paid for Jun 1000 86.5 88.0
ISM Manufacturing Employment Index for Jun 1000 -- 50.9
ISM Manufacturing New Orders Index for Jun 1000 -- 67.0
Fri: Non-farm payrolls for Jun 0830 6,75,000 5,59,000
Private payrolls for Jun 0830 5,80,000 4,92,000
Manufacturing payrolls for Jun 0830 30,000 23,000
Government payrolls for Jun 0830 -- 67,000
Unemployment rate for Jun 0830 5.7% 5.8%
Average earnings mm for Jun 0830 0.3% 0.5%
Average earnings yy for Jun 0830 3.6% 2.0%
Average workweek hours for Jun 0830 34.9 hrs 34.9 hrs
Labor force participation for Jun 0830 -- 61.6%
U6 underemployment for Jun 0830 -- 10.2%
International trade for May 0830 -$71.3 bln -$68.9 bln
Goods trade balance (R) for May 0830 -- -$88.11 bln
Durables ex-defense, R mm for May 1000 -- 1.7%
Durable goods, R mm for May 1000 -- 2.3%
Factory orders mm for May 1000 1.5% -0.6%
Durables ex-transport R mm for May 1000 -- 0.3%
Nondefense cap ex-air R mm for May 1000 -- -0.1%
Factory ex-transport mm for May 1000 -- 0.5%
The Day Ahead - North America is compiled by Yoganand KN and Samrhitha Arunasalam in Bengaluru.
For questions or comments about this report, email us at: [email protected].
To subscribe for The Day Ahead newsletter click here
The minaret of Greatest Mosque is seen as the super moon, known as the "Strawberry Super Moon" rises over Zahraa El Maadi, a suburb of Cairo,
Egypt, June 24. REUTERS/Amr Abdallah Dalsh