Your Trading Week Ahead — June 20th

Welcome to Your Trading Week Ahead for June 20th. Here’s what you need to know before you go…

Quick recap

Equity markets finished the week lower following hawkish comments from Fed. The S&P 500 closed at 4,166 on Friday, down 1.91%. Tech stocks held up fairly well, with the Nasdaq finishing down a modest 0.28% at 14,030. The Dow was hit the worst, closing lower by 3.45% at 33,290.

Jerome Powell and the FOMC gave investors insight into the impending tightening of monetary policy. The Fed plans to raise interest rates twice in 2023 and expects inflation, which now stands at 3.4%, to remain elevated. However, Powell did add that if inflation moves higher than expected, the Fed would use its tools to lower it.

What to watch this week

Market direction

The most important thing to watch moving forward will be how the market responds heading into summer. Markets have been on a tremendous bull run of late. But the Fed’s comments allowed bears to feast the latter half of last week. The action has left things mostly flat since April, even though we’ve touched new highs over that time.

The market seems to be catching its breath. But are we approaching a more substantial pullback from all-time highs? Or will the bulls come back in with a bid?

Earnings roundup

Most public companies have already reported quarterly data. But there’s still a few popular stocks set to report earnings this week.

Thursday will host the bulk of notable earnings releases. Rite Aid ($RAD), Darden Restaurants ($DRI), and Accenture ($ACN) will all report quarterly data premarket. While BlackBerry ($BB), Nike ($NKE), and FedEx ($FDX) present after the close.

Then on Friday, we’ll get a glimpse at the financial health of used car retailer Carmax ($KMX) when they report premarket.

Economic calendar

There’s no shortage of events on the calendar this week with the potential to move markets. Here’s some of the most important things to watch:

• Existing Home Sales (May) – Tuesday at 10am ET
• Jerome Powell’s Semi Annual Testimony Before Congress – Tuesday at 2pm ET
• New Home Sales (May) – Wednesday at 10am ET
• Bank of England (BoE) Monetary Policy and Interest Rate Decisions – Thursday at 7am ET
• U.S. Gross Domestic Product (GDP) (Q1) – Thursday at 8:30am ET
• U.S. Durable Goods Orders and Trade Balance (May) – Thursday 8:30am ET
• Initial jobless claims – Thursday at 8:30am ET
• Federal Reserve Bank Stress Test Results – Thursday at 4:30pm ET
• U.S. Consumer Sentiment and Expectations Indexes (June) – Friday at 10am ET

Tony Dwyer joins the Rebellion Roundtable

Join us tomorrow after the close when Canaccord’s Chief Market Strategist, Tony Dwyer, joins the Market Rebellion crew to break down the current state of the market and what to expect moving forward.

The FREE livestream begins at 4pm ET. You won’t hear this exclusive conversation anywhere else. Click here to reserve your seat.

Interested in learning how you can use the power of unusual options activity to conquer the market? Click here to download our Insider’s Guide to Trading UOA.