A look at some of the key business events and economic indicators upcoming this week:
HOUSING MARKET BELLWETHER
The Commerce Department issues its May tally of new U.S. home sales Tuesday.
Sales slowed in March as businesses closed in an effort to contain the coronavirus outbreak, but they picked up again in April. The surprising gain reflects strong demand for newly built homes at a time when many homeowners are staying put, exacerbating an already chronic shortage of previously occupied homes on the market. Economists expect sales of new homes rose again last month.
New home sales, seasonally adjusted annual rate, by month:
Dec. 731,000
Jan. 774,000
Feb. 717,000
March 619,000
April 623,000
May (est.) 645,000
Source: FactSet
BREAKING A SWEAT
Wall Street expects that Nike closed out its last fiscal year on a downbeat note.
Analysts predict the athletic apparel and footwear company will report Thursday that its earnings and revenue declined in its fiscal fourth quarter that ended in May. Nike has made an aggressive shift to online sales, which helped drive its earnings in the December-February quarter. But the company has since acknowledged that the shutdown of stores due to the pandemic hurt its wholesale business.
IN A SPENDING MOOD?
Consumers pulled back sharply on spending as the coronavirus outbreak shuttered businesses and left millions of Americans out of work.
Spending sank 6.9% in March and a record-shattering 13.5% in April as consumers cut back on goods and services across the board, from cars and clothing to doctor visits and haircuts. Economists project that consumer spending surged 8.6% last month as states began allowing businesses to reopen. The Commerce Department delivers its May data on consumer spending Friday.
Consumer spending, monthly percent change, seasonally adjusted:
Dec. 0.4
Jan. 0.4
Feb. 0.2
March -6.9
April -13.6
May (est.) 8.6
Source: FactSet
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