What to Watch in the Day Ahead - Tuesday, May 17
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U.S. consumer prices likely picked up in April on rising gasoline and rental costs, pointing to a steady increase in inflation that could allow the Federal Reserve to raise interest rates later this year. The consumer price index likely increased 0.3 percent last month, according to a Reuters survey of economists, after edging up 0.1 percent in March. Excluding food and energy, the so-called core CPI is forecast to rise 0.2 percent after March's 0.1 percent increase. (0830/1230) Housing starts are expected to have gained to a seasonally adjusted annual pace of 1.127 million units and building permits are also likely to have increased to a 1.130 million units. (0830/1230) Industrial production probably rebounded in April by 0.3 percent, after an unexpected fall of 0.6 percent in March. (0915/1315)
Two top Federal Reserve officials, Federal Reserve Bank of San Francisco President John Williams and Federal Reserve Bank of Atlanta President Dennis Lockhart, give their latest views on the U.S. economic outlook with the central bank's next policy meeting five weeks away. Both have been upbeat recently on the health of the U.S. economy, but neither has so far publicly agitated for raising rates in June. (1225 /1625) Federal Reserve Bank of Dallas President Robert Kaplan, whose dovish views on monetary policy align with much of the Fed's core, participates in a moderated question-and-answer session before a community forum hosted by the Federal Reserve Bank of Dallas in Midland, Texas, where the oil slump has cost jobs and created a sense of devastation. (1315 /1715) Separately, Treasury Secretary Jack Lew addresses the Jewish Theological Seminary Commencement Ceremony in New York. (1040/1440)
Home Depot Inc, the world's largest home improvement chain sales, is expected to report first-quarter sales above analysts' average estimate. The company likely benefited from higher spending by customers on homes and home improvement than on discretionary categories such as clothes.
Off-price retailer TJX Cos Inc is expected to report first-quarter profit above the average analyst estimate, according to Thomson Reuters StarMine data. Investors will look for sales forecast for the second quarter and the retailer's international expansion plans. Continued...