The Week Ahead on Wall Street

Economic Data

Today, consumer credit data for April will be released. This measures how much credit consumers in the US are utilizing. Total consumer credit increased $25.8 billion or 7.4% year-over-year in March.

Tomorrow, the trade deficit, which measures imports and exports for April, is released. For March the goods and services deficit was $74.4 billion, up from $70.5 billion in February. Also on Tuesday, job openings for May are released.

On Wednesday, wholesale inventories for May are published. They measure changes in the total value of goods held in inventory by wholesalers. A higher reading is bearish for the economy and a lower one is bullish. In April wholesale inventories increased 0.8%.

On Thursday the Labor Department releases initial and continuing jobless claims for the previous week. The number of new people looking for work has steadily declined in recent weeks, and fell below 400,000 for the first time the week ended May 29, the lowest level since the beginning of the pandemic. The Consumer Price Index and Core CPI are also published Thursday.

On Friday, the preliminary Consumer Sentiment Index for June is released. After reaching a pandemic high in April, the index fell in May to 82.9. Rising prices are weighing on sentiment.

Earnings Reports

Today, Stitch Fix (SFIX) reports its quarterly earnings. During the quarter the company’s Founder and CEO, Katrina Lake, announced she would be stepping down, shocking investors and sending shares lower. Since then speculation has abounded about why she is leaving and who will replace her. Investors will be paying close attention to any information Stitch Fix can provide on that front when it reports quarterly earnings. Investors will also be looking for guidance from Stitch Fix about rising shipping and manufacturing costs.

Tomorrow, be on the lookout for earnings from UiPath (PATH). The automation software company went public via an IPO in late April, which gave it a market valuation of about $36 billion. The company was able to raise $1.3 billion in its initial public offering. Tomorrow’s report will be UiPath’s first as a publicly traded company. Investors will be paying close attention to what it has to say about demand now and into the future.

On Wednesday, Campbell Soup Company (CPB) reports quarterly earnings. The company is a household name but has shown little in the way of growth over the years. The same goes for its dividend. Investors will be looking for any hint Campbell Soup will raise the payout, even by a small amount.

Be on the lookout for quarterly earnings from Chewy (CHWY) on Thursday. The online pet food and supplies retailer experienced significant growth during the pandemic. The company is in the process of hiring 400 additional workers at its distribution center in Florida. Investors will be looking to see if pandemic demand will continue as restrictions ease.

Also on Thursday, Signet Jewelers (SIG) reports quarterly earnings. Signet is benefiting from the shift to ecommerce, which many jewelers were not ready for when the pandemic struck. In the fourth quarter, Signet’s ecommerce sales climbed 70% year-over-year in the US and 150% internationally. Investors will be paying close attention to see if that trend is continuing.

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