The Week Ahead on Wall Street

Economic Data

Today, New York Federal Reserve President John Williams speaks at a Bank of International Settlements panel. Investors will be looking for any signs suggesting the Fed will do more to tackle rising inflation. Fed policymakers have been sending mixed messages on how long they think inflation will last. Earlier this month the Fed forecast at least two rate hikes in 2023.

On Tuesday, the S&P CoreLogic Case-Shiller home price index for April is released. This data point measures the average value of single-family homes in the US. With inventory for new and existing homes tight, prices have been rising. In March home prices jumped 13.2%. Also Tuesday, the Consumer Confidence Index for June is published.

On Wednesday, the ADP employment report for June is due. This data point tracks private sector employment month over month. Employment in the private sector increased by 978,000 jobs from April to May, marking the largest gain in employment since June 2020. Also Wednesday, pending home sales for May are released.

On Thursday, initial and existing unemployment claims are published. Initial unemployment claims have been holding steady around 400,000. Also Thursday, construction spending for May is released.

On Friday, factory orders for May will be released. New orders for goods made in the US fell at a faster rate than expected in April, driven by semiconductor shortages, which hurt production of cars and electronics. With shortages still persisting and pent-up demand surging, all eyes will be on how factory orders did month over month.

Earnings

Heading into the end of the quarter, it’s a lighter schedule for earnings calls. Nevertheless, here are a few names to keep an eye on this week.

On Wednesday, Constellation Brands (STZ) reports quarterly earnings. With restaurants and bars reopening, investors will be paying close attention to what the spirits company has to say about demand. After all, Constellation Brands is in a good position to provide color given it owns both high-end spirits and beer brands. Last week rival Pernod Ricard (PDRDY) raised its profit target for the year due to a stronger-than-expected recovery since pandemic restrictions have lifted.

Also Wednesday, be on the lookout for Bed Bath & Beyond (BBBY) to report quarterly earnings. The home furnishings retailer is making a big push in the private label market, launching its latest brand last week. Called Wild Sage, the label is targeting young adults and includes bedding, decor, furniture, bath products, and table linen. In March Bed Bath & Beyond said it was launching eight private label brands. Investors will be paying close attention to hear how those efforts are doing.

Micron Technology (MU) rounds out the big names reporting earnings on Wednesday. The memory-chip maker is contending with supply-chain issues and huge demand which is resulting in semiconductor shortages. That is driving up the prices of chips and raising the profits of the chipmakers, including Micron. Wall Street expects Micron to report year-over-year earnings and revenue growth.

On Thursday, Walgreen Boots Alliance (WBA) reports quarterly earnings. In January the drug store and pharmacy operator announced it was selling a majority stake in its healthcare business to AmerisourceBergen (ABC) for $6.5 billion, with about half going to pay down debt and the rest for growth. Investors will be keen to hear if administering COVID-19 vaccine is driving up sales in stores.

Be on the lookout for McCormick & Company (MKC) to report quarterly earnings Thursday. The spices maker was recently added to the Fortune 500 list of largest US companies by revenue and has benefited from pandemic shutdowns that drove demand. With restaurants and cafés reopening, investors will want to see if McCormick’s growth is sustainable.

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