There’s a lot on the domestic calendar this week. But investors and the world are watching global affairs, too.
Fighting between Iran and Israel intensified over the weekend, with people dying in both countries and Iran reportedly pulling out of planned talks with the U.S. Recent developments in the Middle East not only heighten concerns about the path forward for commodities and other financial markets but stability in the region and beyond.
Meanwhile, several market-driving events are due in the coming days. The Federal Reserve’s interest rate decision, consumer spending data, and possible news on President Donald Trump’s tariffs headline the week. Thursday’s Juneteenth holiday will mean a break from trading.
The Fed will hand down another decision on interest rates this week, with a decision scheduled for Wednesday. The coming weekend could see Tesla providing a significant update on the direction of the electric vehicle maker.
Did consumers in May continue to prop up the economy? Tuesday’s U.S. retail sales will make it clear whether strong spending levels continued, while housing construction data will provide insight into whether builders are catching up with lagging inventory levels. Investors will continue to watch for trade developments as negotiations continue between U.S. officials and key trading partners.Â
It’s a light week for corporate earnings, highlighted by expected reports from homebuilder Lennar, accounting firm Accenture, grocery chain Kroger, and online used car seller CarMax.
Read to the bottom for our calendar of key events—and one more thing. Â
Fed Interest-Rate Decision Comes Amid Increasing Pressure for Cuts
Fed officials have said they are keeping rates steady amid a strong labor market as they monitor inflation data for signs that Trump’s tariffs are driving up prices.
But the pressure is on the Federal Reserve after May inflation data came in lower than economists expected. Despite comments from President Donald Trump urging the Fed to make a one-point cut, investors don’t expect the central bank to take action when its two-day meeting concludes on Wednesday.Â
The CME FedWatch Tool, which measures fed funds futures to determine the path of interest rates, indicates that traders overwhelmingly believe that Fed will keep rates at their current levels in June. They also don’t expect the central bank to move rates at its late July meeting.
After the meeting concludes on Wednesday, Fed Chair Jerome Powell will provide more insight into the central bank’s view on the economy and interest rates when he takes media questions.Â
On Tuesday, retail sales figures from May will provide another barometer of the economy’s health Consumer spending makes up about two-thirds of the U.S. economy. Meanwhile, housing data will also be scrutinized as affordability issues continue to depress home sales. The latest homebuilder confidence reading on Tuesday will show if construction industry officials see improvements coming in the market, while Wednesday’s housing starts data will indicate whether construction levels are rising amid a need for more housing inventory.
Tesla Robotaxi Rollout Could Come as Early as Sunday
After months of waiting, investors could soon get a key update from electric vehicle maker Tesla (TSLA). CEO Elon Musk said in a recent social media post that the company could roll out its robotaxi service in Austin, Texas, as early as Sunday, June 22. “We are being super paranoid about safety, so the date could shift,” Musk wrote.
The introduction of the company’s robotaxi service could be a key moment for Tesla, which is banking on artificial intelligence (AI) and self-driving vehicles to become the transportation technologies of the future. Tesla is well-positioned to lead the market in the emerging technology, analysts have concluded, with Goldman Sachs writing that the EV maker could have a leg up on the competition through its ability to train self-driving through its AI development and to quickly scale production levels of the technology.Â
Despite a light corporate earnings schedule this week, investors will still get some expected updates from noteworthy companies.Â
Lennar’s (LEN) expected report after the bell on Monday follows the homebuilder’s warning of weakness in the housing market in the prior quarter. The scheduled Friday reports from accounting firm Accenture (ACN) and online car seller CarMax (KMX) will be posted in the shadow of both companies’ lower-than-expected profits in the prior quarter.
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This Week’s Calendar
Monday, June 16
- Data to Watch: Empire State manufacturing survey (June)
- Key Earnings: Lennar
Tuesday, June 17
- U.S. retail sales (May)
- Homebuilder confidence (June)
- Key Earnings: Jabil (JBL), John Wiley & Sons (WLY), and La-Z-Boy (LZB)
- More Data to Watch: Import/export price index (May), Industrial production/capacity utilization (May), Business inventories (April)
Wednesday, June 18
- Housing starts (May)
- FOMC interest-rate decision
- Federal Reserve Chair Powell press conference
- Key Earnings: GMS (GMS)
- More Data to Watch: Initial jobless claims (Week ending June 14)
Thursday, June 19
- Financial markets closed for the Juneteenth holiday
- Key Earnings: Smith & Wesson Brands (SWBI)
Friday, June 20
- Leading economic indicators (May)
- Key Earnings: Accenture, Kroger (KR), Darden Restaurants (DRI), and CarMax
- More Data to Watch: Philadelphia Fed manufacturing survey (June)
One More Thing
Are you a recent graduate? Do you know one? Either way, congratulations! Investopedia’s Sabrina Karl has advice for what new grads can do to set themselves up for the future. Read more about the four smart things grads can do with their gift money.Â
