Market Outlook for Next Week
Today, Sunday May 28th, Kevin McCarthy announced that, in principle the White House and the Republicans have reached a deal regarding raising the US debt ceiling. Tonight’s futures should rocket, on top of the moment built last week.
A 600 point to 800 point rise during the week is likely. Which stocks would be best during this updraft? Check out the best stocks of last week since this is just more momentum.
McCarthy said the deal will contain spending cuts which will help lower inflation. Investors are likely going to like this deal, and the S&P, NASDAQ, Dow Jones and Russell indexes should see a big rise this week. That is unless hard line Republicans sink the deal.
One concern for some (bankers) is that FED will need to sell $1 Trillion in treasury bills and the impact might be equal to another .25 FED rate hike. A flood of T-bills would result in slumping bond prices, as will a shift of money from money markets into equities. All in all though, this could help slow inflation and position the private sector for more growth in future. The key benefit is reduced government spending allowing inflation to fall, along with interest rates which allows big and small business to plan for growth in 2024.
Key Stats Reported last 3 weeks were:
- Consumer Confidence fell in April to 101.3 vs 104.0 in March
- Initial (weekly) Jobless Claims totaled 202,044 in the week ending May 20, up .7% from the previous week
- Personal Spending for last week of April was .8%, up from .1% in March
- Fed core lending rate rose .25%
- CPI inflation rate rose to .4%
- Core inflation excluding food and energy, core inflation eased to 5.5% from 5.6%.
- NASDAQ composite is up 24.9% year to date
- S&P is up 10% year to date
- US dollar index rising up to 104.23
This Week’s Key events and reports:
| Tuesday, May 30 | S&P Case-Shiller home price index | |
| Consumer confidence Index | ||
| Wednesday, May 31 | ADP employment | |
| Job openings | ||
| Thursday, June 1 | Initial jobless claims | |
| U.S. productivity | ||
| ISM manufacturing for May | ||
| Friday, June 2 |
|
Next week’s events from TradingView
Weekly forecast hunters are pursuing clues about the direction of the Dow Jones, S&P, and NASDAQ for specific stocks or ETF’s worth buying or those they should dump. I’d like to hear from you about which stocks you think are the most likely stocks that will jump next week and over the next 6 months.
Is a Weekly Stock Forecast Even Possible?
Day traders especially zero in on these temporal changes in stock values. They love that volatility if they can figure it out. For the last few weeks, there’s been a lot of uncertainty regarding the Fed stimulus package. With it’s passing into action, that volatility might ease and we could be back to the bull market run.
The NASDAQ, S&P, Russell, and Dow Jones are all looking for bottoms but they’re not appearing. The questions about the Fed pivoting on the central rate hikes is growing. Increased volatility and political pressures will intensify as the US senate and house mid term elections near. November 8th will be on everyone’s mind soon.
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* Note: This post on next weeks stock prices is for informational and entertainment purposes and should not be regarded as investment advice for any market transactions. Please consult with your stock and financial advisor for investment decisions.
