Before the Bell - The U.S. stock market performed unevenly yesterday. The broader S&P 500 Index struggled through much of the session, but ultimately managed to close in positive territory. Meanwhile, the technology-heavy NASDAQ pressed nicely ahead, as investors seem to have a found a renewed interest in the more dynamic growth names. Overnight, the international markets traded higher. In Asia, the Nikkei delivered a strong session. In Europe, the FTSE 100 made some progress, as well. On our shores, the equity futures are flat-to-up modestly, implying a slightly favorable start to the day.
In economic news, there were no reports published yesterday. However, the remainder of the week should be quite busy. Today, we will get a look at the retail sales figures for the month of May. In addition, the monthly Producer Price Index (PPI) will be updated. This issuance will likely receive some attention, as many investors are monitoring the inflation outlook. Meanwhile, the Federal Reverse commences its two-day meeting today, which wraps up on Wednesday afternoon with some prepared remarks, as well as a potential interest-rate decision. Investors have been increasingly concerned that the Central Bank may break from its dovish policies, if the economy picks up too much.
In the corporate arena, only a small number of companies are slated to deliver profit reports over the next few days. However, there will be some issuances that will be worth watching. Specifically, we will hear from Lennar (LEN), a leading home builder. That report will be important as it may provide information about the housing market and the construction outlook. In addition, Adobe Systems (ADBE), a major media software company, is slated to post its numbers. Adobe has performed quite well lately, as many digital creatives and designers have embraced its cutting-edge technology. Looking ahead, the month of June (and the second quarter of 2021) will soon be drawing to a close. Some corporations may provide revised guidance in advance of the earnings season.
Technically, the S&P 500 Index has held up well during the first weeks of June. The broad market average is now just above the 4,250 level. No doubt, the U.S. economy is in recovery mode, as the coronavirus pandemic finally seems to be under control. Overseas, however, the health crisis is far from over in some countries, and that could weigh on the global economic outlook. – Adam Rosner