Federal Reserve officials will speak this week, providing more insight into their recent decision to reduce interest rates. Friday’s release of the August Personal Consumption Expenditures (PCE) Price Index will show whether inflation continues to slow. Investors can expect fresh data on new and pending home sales, along with an update on housing prices, and consumer sentiment surveys. Micron Technology (MU), Costco Wholesale (COST), Accenture (ACN), and more will also report earnings.
Investors Focused on Fed Officials’ Comments, PCE Inflation Data
Following last week’s closely watched Federal Reserve decision to enact a jumbo-sized interest rate cut, investors will hear from Fed officials this week about their impressions of the U.S. economy. Fed Chair Jerome Powell will deliver pre-recorded opening remarks at Thursday’s 2024 U.S. Treasury Market Conference, his first remarks since last week’s press conference. Other notable speakers will deliver remarks at the event, including New York Fed President John Williams, Fed Vice Chair Michael Barr, Treasury Secretary Janet Yellen, and Securities and Exchange Commission Chair Gary Gensler. Atlanta Fed President Raphael Bostic, Minneapolis Fed President Neel Kashkari, and Boston Fed President Susan Collins are also scheduled to deliver remarks this week.
On Friday, market watchers will likely be focused on the latest inflation data, as the August reading of the Personal Consumption Expenditures (PCE) Price Index will show whether price pressures continue to cool. The July PCE reading showed the Fed’s preferred inflation measurement was down to an annual rate of 2.5%, still higher than the central bank’s target. Investors will look for more progress on inflation.
Micron, Costco, and More Report Earnings
KB Home’s earnings report on Tuesday could also provide some insight into the health of the housing market. According to a Bank of America analysis, the Fed’s interest rate decision is likely to drive down mortgage rates and potentially improve homebuilders’ performance. Memory chip maker and Nvidia (NVDA) partner Micron Technology will report earnings Wednesday, after Morgan Stanley recently downgraded its stock, warning about the health of the memory chip market. Micron’s report comes after its prior quarter earnings were lower than analysts projected, and its revenue guidance disappointed investors. Costco’s earnings on Thursday follows its recent decision to raise membership fees for the first time in seven years, effective Sept. 1. Analysts are expecting the retailer to report higher year-over-year revenue and profit, with memberships rising to 75 million.