Events in Europe remained on the top of investors’ minds last week, but there were several domestic headlines to focus on as well. Small business optimism dipped slightly in may to a 94.4 reading as businesses expect fewer sales. Overall, they were upbeat about the economy. Consumer prices fell by .3 percent in May, its biggest decline in three years due to lower gas prices. New claims for jobless benefits rose by 6,000 to 386,000, highlighting a fragile labor market. In the week ahead investors expect earnings reports from Fed Ex, Oracle and Bed, Bath and Beyond as well as data on interest rates and housing.
The Federal Reserve will meet to discuss the economy and interest rates. During their April meeting the fed left its key interest rate, which affects mortgage, credit card and student loan rates unchanged and said the economy continues to expand moderately, but unemployment remains elevated.
Two reads on housing. First up is the May housing starts report. In April new construction rose 2.6 percent driven by an increase in multi-family homes, but building permits,a gauge of future building activity, declined 7 percent.
We’ll also get the may existing home sales report, which looks at previously owned homes. In April sales rose 3.4 percent coming in slightly weaker than previous months as a milder winter encouraged people to buy.
And that’s your CNBC Market Look Ahead for theGrio.com.