What do you know this week

Inflation will top bills next week for the first full trading week in June.

Investors will get the latest gauge of how quickly prices are rising across the United States when the Bureau of Labor Statistics releases its latest consumer price index on Friday.

This action will come as Federal Reserve policymakers rush to rein in themselves Inflation is near a 40-year high As interest rates rise – while stoking fears, actions may dampen economic growth.

Emphasizing this possibility – and the possibility of the Fed’s rate hike campaign continuing beyond the next two meetings – was Employment data for the month of May for Friday.

The Labor Department’s jobs report reflected a slight slowdown in the pace of employment from April, with 390,000 jobs added to the US economy in May, although overall job growth remains solid on a historical basis.

“Overall, the jobs report bolsters macroeconomic strength, but it also indicates that the Fed is still on hold and may need to continue raising rates by 50 basis points over months,” said Charlie Ripley, senior investment analyst at Charlie Ripley. fall,” Allianz Investment Management said in a note.

These fears All three major indicators led lower on Friday To earn another weekly loss after a temporary tail assembly In four volatile days of trading you fall short on vacation.

“The jobs statement sent reassurance to investors that the recovery is continuing in full force,” Peter Easley, head of portfolio management at Commonwealth Financial Network, said in a note. “The other side of that currency, however, is that inflation will continue to be a problem due to strong consumer demand, wage pressures, and higher commodity prices.”

Headline CPI is expected to rise in May but remain flat from last month’s year-over-year reading. Economists expect the broader measure of the consumer price index to have risen 8.3% in May, On par with the progress of April. Over the course of the month, the CPI is expected to show an increase of 0.7% compared to 0.2% last month.

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The index’s core measure, which excludes volatile food and energy prices, likely slowed to 0.5% month over month from 0.6% in April, and 5.9% annually from 6.2% the previous month.

“Inflation eased a bit in April, and we will need to see that followed by a further slowdown in May to underscore the notion that inflation has peaked,” said Greg McBride, chief financial analyst at Bankrate, in an email comment. “Even then, it will take several months of more moderate price readings for inflation to decline in a meaningful way.”

That sentiment has been shared among federal policymakers recently, including Vice President Lyle Brainard. The second central bank official said on Thursday Denotes half a percentage point increments The interest rates this month and next month were weighted, along with continued tightening thereafter.

“Right now, it’s very difficult to see the issue being paused,” Brainard told CNBC in an interview Thursday. “We still have a lot of work to do to bring inflation down to our 2% target.”

Fedspeak will stop quiet as officials enter a blackout period before their next policy-setting meeting, scheduled for June 14-15. It seems likely that a half percentage point rate hike will be announced after this discussion.

US President Joe Biden meets with Federal Reserve Chairman Jerome Powell and US Treasury Secretary Janet Yellen to talk about the economy in the Oval Office of the White House in Washington, DC, US, May 31, 2022. REUTERS/Lea Millis

Away from Friday’s CPI data, investors await an economic calendar and light gains next week, but volatility is expected to continue as Wall Street braces for tighter financial conditions and weighs on the US economy.

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All while government data shows a sharp contrast from what some corporate leaders see ahead.

Tesla (TSLA) CEO Elon Musk warned of “very bad feeling” about the economy, saying the company is expected to cut about 10% of jobs in an email to executives, Reuters reported Friday, while management is also pleading to “pause all hiring around the world.”

Comments echo JPMorgan Chase’s comments (JPM) President Jimmy Dimon, who warned of a hurricane Pressure on the US economy and weaker outlook reported by leading technology company Microsoft (MSFT), which has been cited more specifically Turbulence caused by fluctuations in currencies.

Not everyone is convinced that these warnings indicate that the economy is on the cusp of a reversal. As Greg Dako, chief economist at EY-Parthenon, told Yahoo Finance on Friday, jobs data in May indicates this The drumbeat of doom and gloom ahead is ‘misleading’ In the context of a labor market that continues to grow.

“While the economy will undoubtedly slow in the coming months, anecdotal evidence of hiring freezes and layoffs at tech companies is misleading as overall job opportunities remain near record levels and layoffs are at record lows,” Dako said.

Economic calendar

Monday: There are no notable reports scheduled for release.

Tuesday: trade balanceApr (expect $89.2 billion, $108.9 billion a month prior); Reviews: Trade Balance; Consumer creditApril (expected $32.750 billion, $52.435 billion over the previous month)

Wednesday: MBA Mortgage Applicationsweek ending June 3 (-2.3% over the previous week); wholesale trade salesMoM, Apr (1.7% over the previous week); wholesale stockMoM, Final Apr (expected 2.1%, 2.1% over the previous week)

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Thursday: Unemployment Complaint Ratesweek ending June 4 (200,000 during the previous week); Ongoing Claimsweek ending May 28 (1.309 million over the previous week); Family change in net worthfirst quarter ($529.7 billion); Bloomberg June United States Economic Survey.

Friday: Consumer Price Index, MoMMay (0.7%, 0.3% over the previous month); core CPI, month after monthMay (0.5% expected, 0.6% over the previous month); Consumer Price Index, YoYMay (expect 8.3% and 8.3% over the previous month); Core consumer price index, year on yearMay (5.9% expected, 6.2% over the previous month); Average real hourly earningsYoY, May (-2.6% over the previous month), real weekly average earningsYoY, May (-3.4% over the previous month), University of Michigan sentiments, June 1 (Expect 58.7, and 58.4 over the previous month); monthly budget statementMay ($308.2 billion over the previous month)

earnings calendar

Monday

Before the market opens: There are no notable reports scheduled for release.

After market close: Coupa (coup)

Tuesday

Before the market opens: JM Smucker Company (SJM), chips barrel (CBRL), Dave Webster (game)

After market close: There are no notable reports scheduled for release.

Wednesday

Before the market opens: Campbell’s soup (CPB)

After market close: five below (five)

Thursday

Before the market opens: There are no notable reports scheduled for release.

After market close: DocuSign (DOCU), stitch repair (SFIX), Amphitheater rental (Leasing)

Friday

There are no notable reports scheduled for release.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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