Costco Earnings: What to Expect, along with 3 others and the Fed’s preferred measure of inflation

At the S&P 500 sector level, only IT and communications services finished the week higher, with technology gaining more than 3% thanks to Nvidia. Energy, on the other hand, led the decline, falling almost 4% for the week. Companies like Nvidia, Palo Alto Networks and TJX Companies reported solid earnings, and 96% of S&P 500 companies reported their financial data for recent quarters. Looking ahead, club names like Salesforce, Best Buy, Foot Locker and Costco will appear on next week’s earnings schedule.

The April personal spending and income data, released on Friday, will attract the most attention because it includes the headline PCE price index. As concerns about inflation continue to be a major factor in daily activities, investors expect the inflation rate to be lower. Thursday will bring the second of three gross domestic product (GDP) readings for the first quarter of 2024, and home sales in anticipation of April will also be released. Any sign of a slowdown in house price growth would be welcome news from the housing sector, which has a major impact on inflation.

Earnings reports from companies like Salesforce, Best Buy, Foot Locker and Costco will provide insight into how investments in artificial intelligence, hardware and consumer preferences are impacting the business. We’ll be closely watching Salesforce’s focus on AI and cloud offerings, Best Buy’s AI-powered hardware refresh cycle, Foot Locker’s turnaround strategy, and Costco’s comments on consumer behavior and inflation. Consumer health and inflation are major concerns for investors as private consumption accounts for a significant portion of GDP.

The stock exchange will be closed on Monday, May 27 for Memorial Day. Throughout the week, companies such as CAVA Group, Box, Abercrombie & Fitch, Chewy, Dick’s Sporting Goods, Advance Auto Parts, Salesforce, Okta, HP Inc, American Eagle Outfitters, and others are scheduled to report earnings. Economic data such as jobless claims, the Gross Domestic Price Index and expected home sales will also be released. The week will end with Friday’s publication of data on personal spending and income as well as the PCE price index.

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