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Will Markets Close Higher for the 1st Week This June?

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Friday, June 24, 2022

This trading week, which began with the Juneteenth holiday and closed markets, is currently sizing up to have provided a nice rebound from last week’s post-Fed meeting trough. At this hour, the Dow is +220 points, the Nasdaq is +95 and the S&P 500 +27 points. Should these numbers hold, it would be the first positive week across the board in the month of June.

And just like most days this week, the economic data informing market sentiment has been rather scant, especially ahead of the opening bell. This changes beginning next week, when we’ll see new Durable Goods Orders, Case-Shiller Home Prices, the final Q1 GDP revision, Jobless Claims and PCE Inflation numbers. The following week we’ll see m monthly employment reports from both ADP (ADP - Free Report) and the U.S. government.

After today’s open, however, we’ll get about as much information as we can handle, with a new University of Michigan consumer sentiment survey, 5-year inflation expectations and New Home Sales for May. New Home Sales, by the way, are on a four-month down-streak as of now — and expected to fall slightly further: 587K estimated versus the previous month’s disappointing 591K. They are also well off the 800K+ pace we were seeing back in December and January.

You may recall Existing Home Sales for May were reported earlier in the week, and those were down -3.4% month over month to their lowest levels since June 2020. And because we’re still referring to numbers a month in arrears — and two Fed hikes from where we are currently — home sales numbers can be expected to stay depleted for the near future, as well.

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