On Wednesday, the Bureau of Labor Statistics will be release May’s Consumer Price Index (CPI) inflation data before the opening bell. The CPI data comes on the heels of a weaker-than-expected May jobs report last week. The U.S. economy added 75,000 jobs during the month, sharply lower than consensus estimates, fueling concerns that the U.S. economy might be cooling off more meaningfully than previously estimated. Thus, the economic data Wednesday and this week will play a crucial role.
“Looking to May, we project headline CPI to rise a more moderate 0.2% as energy price gains eased considerably last month. Excluding food and energy, the core CPI should register a trend-like 0.2% increase. We see little change to the overall trend in inflation as Fed officials prepare to meet later this month,” Wells Fargo said.
Economists surveyed by Bloomberg expect core CPI in May to have risen 0.2% from April and 2.1% from last year.
Meanwhile, athleisure brand Lululemon (LULU) is scheduled to release quarterly earnings results after the bell. Analysts polled by Bloomberg expect Lululemon to report adjusted earnings of 70 cents per share on $756.35 million in revenue.
Lululemon has been on fire, the stock jumped 41% so far in 2019, and Wall Street seems to think the stock has more room to run. The average price target among analysts is $184.77 per share, according to data compiled by Bloomberg. That represents a more than 7% higher from Tuesday’s closing price.
The options market is currently implying an 11% move in either direction for the stock after it reports earnings. Lululemon will be holdings its earnings conference call at 4:30 p.m. ET.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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