What to Watch in the Week Ahead and on Monday, June 8

Fri Jun 5, 2015 3:55pm EDT
 
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(The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT) WEEK AHEAD The best story out of next week will likely come from the forex and bond markets as investors continue to adjust positioning that has long been in favor of buying dollars and buying bonds. The German bond market has seen to that change, as yields there are now around 1 percent and driving more interest in the euro. The jobs report on Friday has pushed the Fed calculus to a point where it seems like a great bet that the Fed will raise rates in September, and so that may drive rates higher across the board. Stocks will likely meander, though Apple's developers conference Monday should garner some interest in the already-buoyant stock.

On Tuesday, U.S. Commerce Department releases data on wholesale inventories in April, which is expected to have increased 0.2 percent compared with 0.1 percent in March. Separately, the labor department releases April data for job openings and labor turnover on the same day. The Treasury Department on Wednesday will issue a monthly budget report for May. The Commerce Department on Thursday issues May data for retail sales, expected to have increased 1.1 percent last month. On the same day, the labor department releases data for import and export prices for May. Import prices are expected to have risen 0.8 percent after dropping 0.3 percent in April, while export prices are expected to have increased 0.2 percent after a drop of 0.7 percent in the last month. The department will also issue data for weekly jobless claims on the same day. On Friday, the University of Michigan reports Consumer Sentiment Index for June, which is likely to have increased to 91.5 from 90.7 in May.

As part of the Windows 10 launch this summer, Microsoft is rolling out the wall-mounted Surface Hub, a gigantic, cloud-connected screen that acts as a digital whiteboard and video conference device. On Wednesday the company will announce pricing and availability dates of its biggest product ever, which it hopes will become a fixture in offices worldwide.

Lululemon Athletica Inc will report first-quarter results on Tuesday. The company is expected to earn 33 cents per share for the first quarter, according to analysts, in line with the top end of the company's forecast. The Canadian yogawear retailer had warned of a weaker near-term outlook in March, citing issues including West Coast port delays, weather and foreign exchange issues. Investors will be looking for more hints on the company's outlook and signs that same-store sales are on the rise again. The company has struggled to regain its footing following a major recall more than two years ago, even as it pushes forward on its expansion plans in overseas markets as well as the menswear and young girls lines. On the same day, off-price retailer Burlington Stores Inc also reports first-quarter results.

The Economic Club of New York is organizing a Lunch Meeting on Tuesday. Alibaba Group founder and Executive Chairman Jack Ma will speak at the event. Federal Reserve Bank of New York President & CEO William C. Dudley will preside.

On Tuesday, Mexico's ANTAD will release retail sales data for May after the indicator rose nearly 5 pct in April. On the same day, Mexico's national statistics institute will release inflation data for May after the indicator fell to just above the central bank's 3 percent target in April. On Thursday, Mexican industrial production data will show how the indicator fared in April, after staying was flat in March.

MONDAY, June 8

Apple Inc holds Worldwide Developers Conference. Apple tells app developers about plans for new products and tools for making software. Speculation has centered on whether Apple will unveil a new streaming music service.

Troubled retailer Sears Holdings Corp is expected to report a smaller first-quarter loss. The company formed a REIT with 254 stores in the quarter, from which it plans to raise more than $2.5 billion from shareholders by offering rights to buy shares in the REIT, and signed three joint venture deals with mall operators to sell and lease back stores.   Continued...