Coming up: Fed interest rate decision, retail sales, housing market data, FedEx earnings
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Fed Chair Jerome Powell.
Key Takeaways
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The Federal Reserve is expected to cut interest rates for the first time in four years Wednesday, with Chair Jerome Powell delivering remarks on the decision.
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Existing home sales, housing starts, and homebuilder confidence are among the housing market data announced this week, while retail sales data comes Tuesday.
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Earnings reports coming from FedEx, General Mills, and home builder Lennar.
Economists believe the Federal Reserve will lower interest rates at its meeting this week, with the Wednesday announcement followed by a press conference with Chair Jerome Powell.
Investors will also get several economic data releases this week, including existing home sales, homebuilder confidence, and housing starts. Retail sales data on Tuesday could also impact markets.
FedEx (FDX), General Mills (GIS), Darden Restaurants (DRI), and homebuilder Lennar (LEN) are among the companies reporting earnings this week.
Monday, Sept. 16
Tuesday, Sept. 17
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Retail sales (August)
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Federal Open Market Committee meeting begins
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Housing market index (September)
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Business inventories (July)
Wednesday, Sept. 18
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Housing starts and permits (August)
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FOMC interest rate announcement
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Federal Reserve Chair Jerome Powell’s press conference
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General Mills reports earnings
Thursday, Sept. 19
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Initial jobless claims (Week ending Sept. 14)
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Leading economic indicators (August)
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Existing home sales (August)
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Philadelphia Fed manufacturing survey (September)
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FedEx, Darden Restaurants, Lennar and Cracker Barrel Old Country Store (CBRL)report earnings
Friday, Sept. 20
Investors Expect Rate Cut on Wednesday, Plus Powell Comments, Retail Sales Report
Investors are anticipating a long-awaited reduction in borrowing costs this week when the Federal Reserve concludes its September meeting on Wednesday with a 2 p.m. ET announcement on interest rates.
After first raising interest rates in March 2022 to combat spiking inflation, the Fed gradually increased its influential federal funds rate to 5.25%-5.5%, the highest levels in 23 years, and held them there for more than a year. Now, with inflation subsiding and signals that the labor market is softening, the Fed is expected to lower interest rates for the first time in four years.
Federal Reserve Chair Jerome Powell will deliver remarks about the interest rate decision at a press conference at 2:30 p.m. Investors will listen for clues about the Fed’s next monetary policy decisions and views on the economy.
On Tuesday, retail sales data for August will provide Fed officials with a look at consumer spending, which accounts for roughly two-thirds of U.S. Gross Domestic Product (GDP). Retail sales surprised in July, as resilient consumers continued to defy economic forecasts.
Market watchers will also get several pieces of housing data this week, including existing home sales, housing starts, and homebuilder confidence.
FedEx, General Mills to Report Quarterly Earnings
FedEx will report earnings on Thursday. The package delivery company beat analyst expectations in its prior earnings report, as CEO Raj Subramaniam forecasted that the company would be able to extend its momentum into 2025.
On Wednesday, General Mills’ report will show how the cereal maker is weathering what CEO Jeff Harmening has called a “more challenging operating environment.” The maker of Betty Crocker cake mix and Blue Buffalo pet food missed sales estimates in its most-recent quarterly report, and the company’s earnings forecast came in lower than expected.
Financial updates on Wednesday from Cracker Barrel and Olive Garden-parent Darden Restaurants will show whether restaurants continue to face headwinds. Lennar’s report on Thursday comes after the homebuilder forecast weaker-than-expected construction numbers during its prior quarterly report, indicating that demand for new homes remains soft.
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