Here’s what to look out for next week:
Next week is top-heavy with housing data. Existing home sales are due out at 10:00am on Monday, June 23rd; The Case-Shiller Index and New Home Sales will both be released on Tuesday the 24th.
Existing home sales are expected to tick up slightly to 4.7 million. “I think there’s a risk that it’s a miss,” says Yahoo Finance editor-in-chief Aaron Task. “We’ve seen the trends, the pace of housing growth has really slowed and now people are realigning their forecasts so this year might not be so great for housing after all, that the best we could hope for is 3-5% up year.”
Task also points to slowed income growth and housing numbers, “Even though the job market has come back people can’t afford to buy a house after a 12% up year last year on top of the 12% up year the year before.”
Personal Consumption Expenditures (PCE)
PCE data, the Fed’s favorite inflation gauge, is released Thursday, June 26th at 8:30am. “What’ I’m watching for is whether it comes in the zone of anticipated levels of 0.2%,” says Yahoo Finance senior columnist Michael Santoli.
“Basically the worriers have now decided that inflation is a thing to worry about,” says Santoli. “If we get an on-target PCE number next week it will be a 1.5% increase over the last 12 months in this core measure, that’s not a problem, it’s right in the zone of the [Fed] target. The question is, does it pick up speed from here.”
The Dow to 17k
“I’m being willfully dumb because I don’t think housing matters,” says Yahoo Finance’s Jeff Macke.
“I think inflation is just something to keep the economists busy…and I tell you what, Dow 17,000 will give all of us an excuse to worry and talk about how it doesn’t mean anything…it will be the “Yo” of next week when we hit 17,000 and all we talk about is how it’s a sign of the apocalypse.
What are you watching for next week? Let us know in the comment section below or on Twitter, @YahooFinance