Yahoo Finance

Summary

The big earnings news this week comes from Nvidia and Walmart, and follows worries at the end of last week about renewed inflation and rising yields. Last week, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 rose 0.1%, and the Nasdaq gained 0.1%. Year to date, all three indices remain in positive territory, with the DJIA up 3%, the S&P 500 up 8%, and the Nasdaq up 13%. On the earnings calendar, highlights include Home Depot, Toll Brothers, and CAVA Group on Tuesday; Nvidia, TJX, Lowe's, and Target on Wednesday; Walmart, Deere, Ralph Lauren on Thursday; and Williams-Sonoma on Friday. Some 91% of S&P 500 companies have reported so far, and overall earnings are up 28% from last quarter. Information Technology, up 53%, and Communication Services, up 51%, are leading the pack. At the bottom are Healthcare, down 3%, and Energy, down 1%, according to LSEG I/B/E/S. The economic calendar is light this week. The minutes of the Fed's last rate meeting in May will be released on Wednesday; data on Housing Starts and Building Permits on Thursday; and an update on Consumer Sentiment on Friday. Turning to economic data and forecasts, gas prices are rose another five cents last week and are now at an average of $4.50 per gallon for regular gas. The Atlanta Fed GDPNow forecasts 4.0% GDP growth for 2Q, which compares to the 2% actual reading for 1Q. The Cleveland Fed Inflation Nowcast forecast for CPI in May is 4.2%, compared to the 3.8% print for April and 3.3% in March. Mortgage rates remained essentially flat last week, down one basis point, with the average 30-year fixed-rate mortgage now at 6.36%, according to FreddieMac. The next Federal Open Market Committee (FOMC) meeting is on June 17. Odds are at 1% for a rate cut. Kevin Warsh now officially holds the top job at the Federal Reserve, while outgoing Chairman Jerome Powell will remain on the as a governor. Taking a deeper