What will drive the markets this week?
Markets are expected to continue experiencing volatility driven by inflation, recent monetary policy changes and geopolitical impacts.
Investors this week are closely monitoring updates on U.S. inflation, with the release of the April Consumer Price Index (CPI) and Producer Price Index (PPI). Notably, inflationary gains have been driven by rising energy costs and rising food prices. Economists expect US inflation to slow to an annual rate of 8.1%, down from a 40-year-high of 8.5% in March.
Inflation data will also be available for major European (Germany) and Asian economies (China). Data on industrial production growth for Europe and the U.K to be released this week will provide insights on those economies.
Two of the world’s largest automakers – Toyota & Honda – report earnings this week, along with Disney, Alibaba, Fox Corporation & Warner Music Group.
Monday, May 9:
- Earnings from Duke Energy, Suncor Energy, Exelon, Simon Property Group, BioNTech, and Tyson Foods.
- U.S. Wholesale Inventories (March)
Tuesday, May 10:
- Earnings reports from Sony, Occidental Petroleum, Takeda Pharmaceuticals, Sysco, Electronic Arts, Coinbase, Fox Corporation, and Warner Music Group.
- U.S. Consumer Inflation Expectations (April)
- NFIB Business Optimism Index (April)
- IBD/TIPP Economic Optimism (May)
- China Inflation Rate (March)
- Germany ZEW Economic Sentiment (March)
Wednesday, May 11:
- Earnings from Toyota, Disney, and Chinese Petroleum & Chemical, Rivian Automotive, and Sun Life Financial.
- U.S. Consumer Price Index (CPI) (April)
- Germany Consumer Price Index (CPI) (April)
Thursday, May 12:
- Earnings from Alibaba, Brookfield Asset Management, Motorola, Dillard’s, and WeWork.
- U.S. Producer Price Index (PPI) (April)
- U.K. Industrial Production (March)
Friday, May 13:
- Earnings from Honda.
- U.S. Consumer Sentiment (May)
- Eurozone Industrial Production (February)
- University of Michigan Consumer Sentiment - Preliminary (May)