At the S&P 500 sector level, only information technology and communication services finished higher on the week, with tech gaining more than 3% thanks to Nvidia. On the flip side, energy led to the downside, sinking nearly 4% on the week. Companies like Nvidia, Palo Alto Networks, and TJX Companies reported solid earnings, with 96% of S&P 500 companies delivering their financials for their latest quarters. Looking ahead, Club names like Salesforce, Best Buy, Foot Locker, and Costco are on next week’s earnings schedule.
The April personal spending and income data, out on Friday, will garner the most attention as it contains the core PCE price index. With concerns about inflation still driving much of the day-to-day action, investors are looking for the rate of inflation to track lower. Thursday brings the second read of three on first-quarter 2024 gross domestic product (GDP), while April pending home sales are also set to be released. Any signs that the rate of home price advances are easing would be welcome news in the housing sector, which has been a major influence on inflation.
Earnings reports from companies like Salesforce, Best Buy, Foot Locker, and Costco will provide insight into how investments in artificial intelligence, computer hardware, and consumer preferences are driving business. Salesforce’s focus on artificial intelligence and cloud offerings, Best Buy’s AI-driven hardware refresh cycle, Foot Locker’s turnaround strategy, and Costco’s commentary on consumer behavior and inflation will be closely watched. The state of the consumer and inflation are key concerns for investors, as private consumption accounts for a significant portion of GDP.
The stock market will be closed for Memorial Day on Monday, May 27. Throughout the week, companies like CAVA Group, Box, Abercrombie & Fitch, Chewy, Dick’s Sporting Goods, Advance Auto Parts, Salesforce, Okta, HP Inc, American Eagle Outfitters, and others are set to report earnings. Economic data like initial jobless claims, the Gross Domestic Price Index, and pending home sales will also be released. The week will be capped off by the release of the Personal Spending & Income and PCE price index data on Friday.
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