The Nasdaq Composite rose slightly on Friday, hitting its fifth consecutive record close, as new data from last week showed further cooling in inflation and a decline in Treasury yields. For the week: The tech-heavy Nasdaq gained 3.2%, while the S&P 500 gained 1.6% and the Dow Jones Industrial Average fell 0.5%. Economic updates added to the gains. First, the consumer price index (CPI) for May came in weaker than expected on Wednesday, unchanged from April's reading. Economists had expected a 0.1% increase. A day later, the producer price index (PPI) for the month fell 0.2%, versus expectations for a 0.1% increase. (The CPI measures prices for a basket of goods and services across the U.S. economy, while the PPI is a measure of the prices producers get for their goods and services in the market.) Both releases were welcomed by investors. They showed that the Federal Reserve's two-year plan to raise interest rates and keep them high to reduce inflation is still working. There is hope that as prices fall, the central bank will cut rates again. Fed Chair Jerome Powell shared the progress with reporters after the FOMC left rates unchanged on Wednesday, saying more data was needed before a cut. He suggested, however, that a cut before year-end would likely be in order. The market seems to disagree. On Friday, the CME FedWatch tool estimated two cuts this year to be the most likely — the first in September and another in December. Among the S&P 500 sectors, information technology was the week's big winner, up nearly 6% on big moves by club names Apple and Broadcom, as well as Oracle and Adobe. Also helping was portfolio heavyweight Nvidia's 8.5% rally following its 10-for-1 stock split on Monday. On the other hand, the energy sector was the biggest loser, followed by financials and industrials. Within the club, we heard from Broadcom this week, which reported strong quarterly results and announced its own 10-for-1 stock split. No portfolio companies are reporting earnings next week. In the first quarter, the technology sector was the big winner, as 89% of companies in the sector reported earnings that beat expectations. That's followed by healthcare at 88% and consumer discretionary at 84%, according to FactSet. On the sales side, real estate led the way, with 74% of companies reporting positive sales surprises, followed by technology at 71% and healthcare at 69%. Here's what we have on our radar for the week ahead — keeping in mind that U.S. markets are closed on Wednesday for Juneteenth. Retail sales. May results come out Tuesday and should shed some light on the resilient consumer. What are people spending money on? What are they saving from? Investors are expecting a 0.3% overall monthly gain, according to FactSet. Industrial production and capacity utilization. This will show how well manufacturing, mining, and electric and gas utilities are doing. Economists expect industrial production to rise 0.3% month-over-month, with capacity utilization at 78.6%, up slightly from the previous month, according to FactSet. Housing. At the end of the week, May housing starts and existing home sales dominate. Housing costs have been a major source of upward pressure on inflation, so Wall Street will welcome any sign of easing earnings. Earnings. While no portfolio companies report results, there are two to keep an eye on: Lennar on Monday and Darden Restaurants on Thursday. Lennar is one of the largest homebuilders in the U.S., so we can use that release to indirectly provide further clues about where inflation is headed. Ideally, we want to see more supply on the way, as that will be key to moderating price inflation — and that is key to the Fed's rate cuts later this year. Darden Restaurants, the operator of Olive Garden, Longhorn Steakhouse, Yard House and others, will give us another look at consumer spending. Monday, June 17 After the close: Lennar (LEN), La-Z-Boy (LZB) Tuesday, June 18 8:30 a.m. ET: Retail Sales 9:15 a.m. ET: Industrial Production and Capacity Utilization Before the close: Americas CarMart (CRMT) After the close: KB Home (KBH) Wednesday, June 19 U.S. stock markets are closed for Juneteenth. Thursday, June 20 8:30 a.m. ET: Initial Jobless Claims 8:30 a.m. ET: Housing Starts Before the market opens: Accenture (ACN), Kroger (KR), Darden Restaurants (DRI), Jabil (JBL) After the market opens: Smith & Wesson (SWBI) Friday, June 21 10:00 a.m. ET: Existing Home Sales Before the market opens: CarMax (KMX), FactSet (FDS) (A complete list of stocks in Jim Cramer's Charitable Trust can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. After a trade alert is sent, Jim will wait 45 minutes before buying or selling a stock in his charitable trust's portfolio. If Jim has discussed a stock on television on CNBC, he will wait 72 hours after the trade alert is issued before executing the trade. THE INFORMATION REGARDING INVESTING CLUB DESCRIBED ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY AND OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR OBLIGATION IS CREATED OR RESULTS FROM THE RECEIPT OF INFORMATION RELATED TO INVESTING CLUB. NO PARTICULAR RESULT OR PROFIT IS GUARANTEED.
A trader works as a screen displays a press conference by Federal Reserve Board Chairman Jerome Powell following the Fed's interest rate announcement on the floor of the New York Stock Exchange (NYSE) in New York City, USA, January 31, 2024.
Brendan McDermid | Reuters
The Nasdaq-Composite rose slightly on Friday to its fifth consecutive record close, as new data last week showed a further cooling in inflation and a decline in government bond yields.
