Production Data, Conference Board Index, S&P Shuffle: 3 Things to Watch
2022.06.16 23:21
By Liz Moyer
Investing.com — Stocks accelerated losses heading into the close on Thursday as investors worried about the looming threat of recession.
Central banks across the globe raised rates, in keeping with the Federal Reserve’s own half-point hike on Wednesday with a promise of more to come. Officials want to tame inflation without tipping the economy into a downturn but signs were already becoming clearer. Tech companies are laying off workers — or at least freezing hiring — and companies from retailers to manufacturers are making adjustments to rising costs.
After the close of trading Friday, investors will have three days to mull over the economic signals. Monday is a U.S. trading holiday.
Next week will bring more data on housing, with new and existing home sales and mortgage trends. Borrowing costs are soaring as would-be home buyers wait on the sidelines for more housing stock to become available and for prices to cool. Already, the rate for a 30-year fixed rate mortgage is above 6% in some areas, with interest rates doubling since the start of the year.
Friday is otherwise a light day for data and for earnings. Here are three things that could affect markets tomorrow:
1. Production data
At 9:15 AM ET, data on industrial and manufacturing production come out. Analysts expect the industrial production number to tick up 0.4% for the month of May compared to a 1.1% gain for April. Manufacturing production is expected to rise 0.3% for May, compared with an 0.8% gain the prior month.
2. Conference Board’s index
The Conference Board will release its Leading Economic Index for May as well. Analysts expect a 0.3% decline, about the same as the April decline.
3. S&P 500 shuffle
The S&P 500 is set to add ON Semiconductor Corporation (NASDAQ:ON) and Keurig Dr Pepper Inc (NASDAQ:KDP) after the closing bell. They take the place of IPG Photonics and Under Armour (NYSE:UA).
