The stock market experienced gains last week despite a stronger-than-expected jobs report on Friday. The Dow Jones Industrial Average rose by 0.7%, the S&P 500 by 1.5%, and the Nasdaq Composite by 2.5%. Nonfarm payrolls saw an increase of 272,000 in May, surpassing the estimated 190,000. The Labor Department reported that wages also rose by 0.4% monthly. Technology, healthcare, and communication services were the top-performing sectors, while utilities, energy, and materials lagged behind. Earnings season is wrapping up with positive surprises from 79% of S&P 500 companies.
Looking ahead, next week will focus on inflation, with the release of the May consumer price index on Wednesday. Economists predict a 3.4% annual increase at the headline level and a 3.5% increase at the core level. The Federal Reserve will announce its rate decision on Wednesday, with a 99.5% likelihood of rates remaining unchanged. Producer prices will be reported the following day, with economists expecting a 2.5% annual increase at both the headline and core levels.
In corporate news, Broadcom will report quarterly earnings on Wednesday, with a focus on AI networking and semiconductor business performance. Apple’s Worldwide Developers Conference will also take place next week, with expectations for updates on generative AI features for the iPhone. The event could impact Apple’s stock performance if it impresses with new features.
Market events for the upcoming week include earnings reports from Academy Sports and Outdoors, GameStop, Oracle, and more. Economic reports on initial jobless claims and producer prices will also be released. As a CNBC Investing Club subscriber, you will receive trade alerts from Jim Cramer before any trades are made in the charitable trust’s portfolio. Please note that the information provided is subject to terms and conditions, privacy policy, and disclaimer.