Besides monitoring the Greek debt crisis, investors had quite a few domestic headlines to digest last week. The fed left its key interest rate — which affects mortgage, credit card and student loan rates — unchanged, existing home sales fell by 3.6 percent in May — to a six month low, and the US and other countries announced the release of 60 million barrels of oil to bring down gas prices. In the week ahead investors will get a read on consumers with earnings reports from family dollar, general mills and Darden Restaurants — parent company of Red Lobster. We also expect data on home prices, manufacturing and income.
We’ll gain insight on the housing market with the April case-shiller home price index report — which tracks price changes in metro areas such as Atlanta, New York and Tampa. In March, home prices fell 3.6 percent from year ago and suggests the housing recession is far from over.
We’ll get a read on manufacturing with the June report from the institute for supply management. In May, manufacturing activity fell to a 53.5 reading, expanding at its slowest pace in 20 months due to higher energy prices, but a reading over 50 signals expansion.
We’ll check the pulse of consumer spending and finances with the May personal income report. In April, consumers saw their wages increase by 4 tenths of 1 percent — spending also rose by 4 tenths of 1 percent, a little slower than expected due to higher gas prices.