The Week Ahead on Wall Street

Economic Data

Today be on the lookout for May’s existing home sales, released by the National Association of REALTORS®. In April the number fell 2.4% from March, the third straight monthly decline. Year-over-year sales were down 5.9%. Inventory of unsold homes increased and the median average price climbed 14.8% over the previous 12-month period.

Tomorrow, the Mortgage Bankers Association will release weekly mortgage applications. With interest rates rising, last week’s total mortgage application volume was down 52.7% year-over-year. That trend is expected to accelerate following the Fed’s latest rate hike. Also watch for the MBA’s average rate on a 30-year fixed mortgage, which continues to rise, and has contributed to plummeting numbers of applications to refinance.

Thursday, weekly jobless claims are due. Last week’s number fell to 229,000. Still, that exceeded analyst expectations. The reading continues to show a strong labor market all while some worry inflation and rising rates will push unemployment higher, something the Fed predicted last week. S&P Global’s flash manufacturing and services PMI for June are also set for release.

Friday, May’s new home sales will be published. The number fell 16.6% in April from March which was significantly higher than Wall Street estimates. Year-over-year new home sales declined by 26.9%. Analysts attribute that to rising mortgage rates and persistent inflation, all while home prices remain elevated. The University of Michigan will also publish its final consumer sentiment index for June, as well as this month’s final five-year inflation expectations.

Earnings

Today, American furniture manufacturer La-Z-Boy (LZB) reports earnings. Last week the company announced the hiring of Carol Y. Lee as its new chief information officer. Amid higher inflation, companies that sell big-ticket items like recliners and couches have seen diminished demand, especially in comparison to the pandemic when stimulus checks fueled spending.

Tomorrow, KB Home (KBH) hands in its latest report card. The home builder announced the grand opening of its latest gated community in northwest Las Vegas late last month. Meanwhile, last week’s home builder sentiment index dropped to its lowest level in two years amid falling demand and increased costs.

Thursday, parcel delivery firm FedEx (FDX) will share its most recent results. Last week the company announced it would boost its dividend and shake up its board. It’s part of an agreement with activist investor D.E. Shaw & Co. that comes just weeks into new CEO Raj Subramaniam’s tenure. FedEx’s share price enjoyed its biggest daily increase in nearly 36 years following the news.

Friday, CarMax (KMX) will report earnings. The used vehicle retailer released a report this month that said customers are becoming more interested in electric vehicles amid soaring gas prices. The company’s EV test drives in March were 1.5 times higher than the same period in 2021.

The Week Ahead at SoFi

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