What To Expect in the Markets This Week

In a holiday-shortened trading week, market watchers will get new inflation data, updates on consumer sentiment, housing market data and a handful of noteworthy earnings reports.

Despite markets being closed for Good Friday, investors will be tuned in to the end-of-the-week release of the Personal Consumption Expenditures (PCE) index for signs on whether inflation has resumed its downward path, which is a key data point for the Federal Reserve as it weighs cuts to its benchmark interest rate.

On Tuesday, meme stock GameStop (GME) will report earnings, with Walgreens Boots Alliance (WBA), Cintas (CTAS), Carnival (CCL), and Jefferies Financial Group (JEF) also reporting this week.

Monday, March 25

• New home sales (February)

Tuesday, March 26

• Durable-goods orders (February)
• S&P Case-Shiller home price index (January)
• Consumer confidence (March)
• McCormick & Co. (MKC), TD SYNNEX (SNX), GameStop (GME), and nCino Inc. (NCNO) report earnings 

Wednesday, March 27

• Cintas (CTAS), Paychex (PAYX), Carnival (CCL), and Jefferies Financial Group (JEF) report earnings

Thursday, March 28

• Initial jobless claims (Week ending March 23)
• U.S. GDP – second revision (Fourth quarter)
• Chicago business barometer (March)
• Pending home sales (February)
• Consumer sentiment – final (March)
• Walgreens Boots Alliance (WBA), MSC Industrial Direct (MSM), and BRP Inc. (DOOO) report earnings

Friday, March 29

• Markets closed for Good Friday
• PCE (February)
• Advanced U.S. trade balance (February)
• Advanced retail inventories (February)
• Advanced wholesale inventories (February)

Fed Officials Looking at Inflation Data, Consumer Sentiment

Market watchers will get another look at inflation with Friday’s release of the Personal Consumption Expenditures (PCE) index for March, the first significant inflation number to be released after the Federal Reserve said last week it needs greater confidence inflation is under control before it will cut its benchmark interest rate. The PCE being the Fed’s preferred measurement of inflation.

After price pressures gradually decreased over 2023, inflation began to edge higher this year. Last month’s PCE report showed consumer prices rose 0.3% in January from December, an acceleration from the 0.1% gain the previous month, the Bureau of Economic Analysis said. Earlier this month, the Bureau of Labor Statistics’ Consumer Price Index (CPI) inflation reading for February came in hotter than expected for a second straight month.

However, the higher inflation data didn’t push Fed officials to change their position on how many rate cuts would be likely this year, keeping it at three, though they don’t see as many cuts coming in 2025 as they previously did.

Also this week, investors will see two reports on how Americans are feeling about their finances, with both the Conference Board’s Consumer Confidence Index and the University of Michigan’s consumer sentiment survey scheduled for release. Fed officials look closely at these reports, especially focusing on consumers’ expectations for inflation in the coming year.

Other noteworthy indicators this week include data on new home sales on Monday and the Case-Shiller home price index on Tuesday.

GameStop, Carnival Highlight Earnings Calendar

A handful of noteworthy earnings will also dot investors’ calendars this week. 

On Tuesday, GameStop, which gained notoriety a few years ago as the first meme stock, will report its earnings, coming after the board last quarter approved a new policy that allows the company to “invest in equity securities, among other investments.” It gave Chair and CEO Ryan Cohen the power to manage the firm’s portfolio.

Carnival’s earnings report on Wednesday will show whether the cruise industry can sustain its momentum after Norwegian Cruise Line Holdings Ltd. (NCLH) recently reported its first annual profit since 2019.

On Thursday, retail pharmacy chain Walgreens Boots Alliance will report earnings for the first time since it was removed as a component from the Dow Jones Industrial Average (DJIA). 

Other companies reporting this week include spice seller McCormick, uniform provider Cintas, fintech firm nCino, and Sea-Doo watercraft maker BRP.