U.S. Financial Market Update: The Week Ahead

THINGS TO WATCH

APRIL INFLATION TRENDS: Investors will be dialed in to this week’s consumer price index (CPI) and producer price index (PPI) data for April after Friday’s upside surprise (3.5% vs. 3.2%) in consumers’ one-year inflation expectations in the University of Michigan’s preliminary May sentiment index. Tomorrow morning, year-over-year PPI is projected to have ticked up to 2.2% in April from 2.1% in March. According to the median estimate in a Bloomberg survey, the April CPI reading (released Wednesday morning) is expected to be 0.4% for the second straight month. The annual rate of change in CPI is likely to have ticked down to 3.4% in April from 3.5% the prior month based on the same survey.

HOME DEPOT: Tomorrow morning, Home Depot’s (HD) quarterly results are projected to include a 2%-4% decline in same-store-sales (SSS) amid a challenging environment for retail home improvement spending on big-ticket items including new appliances. Investors will be looking for an update from HD management on the timeline for closing the recent $18 billion acquisition of SRS Distribution.

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