[Screen shows “Weekly Market Outlook with Jeffrey Kleintop”]
[Jeff holds up illustration of house with raised roof labelled “debt”]
From U.S. debt ceiling drama to the release of the Fed minutes and the latest sentiment reading from business leaders, I’m Jeff Kleintop and here’s 90 seconds on what you need to know for the week ahead.
Kicking off the week there is some optimism about a debt ceiling deal. The hope is that the House can vote on a deal by the end of this week and the Senate next week. But we expect a number of twists and turns.
On Tuesday, we get the preliminary May
[Jeff holds up illustration of a rabbit and a turtle labelled “different speeds”]
Purchasing Managers’ Indices that track the sentiment of business leaders around the world. The manufacturing sector likely remains in a recession, but services are expected to show continued strength in May—keeping the overall global economy stuck in the middle with sluggish growth.
On Wednesday, we get the IFO survey of Germany’s business climate, expected to show continued strength.
[Jeff holds up illustration of fireworks]
The outlook has improved in 2023 helping drive the German DAX Index to all-time highs last week.
On Thursday, the Fed issues minutes of its May policy meeting where it raised interest rates
[Jeff holds up illustration of a sun behind clouds labelled “central bank forecast”]
by 25 basis points and hinted it may be the final move. Markets will look for how united - or not - the committee is on 5.25% as the peak in the policy rate.
On Friday, we get a read on the U.S. consumer
[Jeff holds up illustration of credit cards]
with personal income and spending for April. Earnings reports from Best Buy, Costco and Dollar Tree this week are expected to echo the cautionary note sounded last week by retail peers Walmart, Target and Home Depot as tightened household budgets continue to crimp consumer demand.
[Jeff holds up a note with the words “Thank you”]
Thanks for watching.
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