As the US stock earnings season approaches its end, investors will focus on the key quarterly performance of technology giants Salesforce and Dell Technologies, as well as retail leader Costco. In addition, the financial reports of financial institutions such as Scotiabank and Royal Bank of Canada are also worth paying attention to.

Inflation indicator

The economic data released this week is particularly important, especially the Personal Consumption Expenditure (PCE) Price Index for April. As the Federal Reserve's preferred inflation indicator, The PCE price index will be closely monitored to assess whether inflation is approaching the Federal Reserve's 2% target.

In March 2024, the annual PCE inflation rate rose to 2.7%, reaching a four month high. The sustained inflationary pressure will suppress market expectations for this year's interest rate cut.

Consumer Behavior Insights

Personal income and expenditure data for April will also be the focus. Previously, personal income increased by 0.5% month on month in March, in line with market expectations, while personal expenses increased by 0.8% month on month, exceeding expectations. These data will help determine whether consumer power will continue into the second quarter.

GDP Growth Analysis

Investors will also pay attention to the second estimate of GDP growth in the United States in the first quarter of 2024. The preliminary estimate released at the end of April showed an annualized growth rate of 1.6%, lower than the 3.4% in the previous quarter. This correction is particularly important for understanding the trajectory of economic expansion, as there are signs that economic growth is slowing down.

Other data releases

In addition, the May Conference Board (CB) Consumer Confidence Index will provide a barometer of consumer sentiment, which is crucial for predicting economic trends.

The sales data of unsold houses in April will provide clues to future housing market activities. Most unsold property sales are converted into actual transactions within one to two months.

Through this week's financial reports and key economic indicators, investors will be able to understand the health of the US economy, inflation prospects, and consumer behavior. Please pay attention to the dynamic changes of these important updates.