Monday
Earnings Announcements: Novellus (NVLS)

Tuesday
Economic Reports: Core PPI, PPI, Retail Sales

Will this be the month that we finally see inflation take hold? If expectations come true, it very well could be. PPI is anticipated to show an increase of nearly 1%. Core PPI (which excludes food and energy costs) is expected to show an increase of 0.10%. Read the full story

Tuesday

Economic Reports: Building Permits, Housing Starts, PPI, Core PPI, Industrial Production

Despite the continued onslaught in the housing market, expectations are for an increase in both building permits and housing starts. Only once in the last six months have either of these reports exceeded analyst expectations. I expect the trend continues, with both of these reports falling short of expectations.

Both the Producer Price Index (PPI) and Core PPI are expected to increase this month. The PPI reading is expected to post a significant increase compared to last month. Core PPI (which excludes food and energy costs) is expected to post a slight increase over last month.

Industrial Production is likely to indicate a seemingly endless decline in the manufacturing sector. It will likely be quite a while until this report turns around.

Earnings Calendar: Best Buy (BBY), Adobe (ADBE)

Wednesday

Economic Reports: CPI, Core CPI

The Consumer Price Index (CPI) and Core CPI and expected to post vastly different numbers for May. The CPI figure is anticipated to show a deflationary reading of -0.90%. This is due to the continued drop in food and energy prices. The Core CPI figure, which excludes food and energy, is expected to post a slight increase since last month.

Earnings Calendar: FedEx (FDX)

Thursday

Economic Reports: Philadelphia Fed

The Philly Fed report could provide some good news for the market to mull over on Thursday. While the report will likely indicate ongoing contraction in the manufacturing sector, the reading is slowly moving toward zero. A reading above zero indicates expansion.

Earnings Calendar: Research In Motion (RIMM)

Monday

Earnings Announcement: LOW

Tuesday

Economic Reports: Building Permits, Housing Starts

Expectations are for both of these reports to show a modest improvement versus the previous month. With the deteriorating housing market, I don’t think these reports will meet expectations. Until the existing inventory is whittled down, these reports should show a drop in permits and starts. Of course, I have been wrong before, but I can’t imagine any builder wanting to add more inventory to the drastic oversupply right now. Read the full story

This promises to be a very busy week with a full calendar of economic reports and earnings announcements, so let’s dive right in and highlight some of the more important ones. Read the full story