All three major averages closed higher for the week, shrugging off Friday’s hotter than expected jobs report. The Dow Jones Industrial Average gained 0.7%, while the S & P 500 rose 1.5% and the Nasdaq Composite climbed 2.5%. Nonfarm payrolls increased by 272,000 in May, above the 190,000 estimate from Dow Jones and April’s 175,000 gain, the Labor Department reported. Wall Street was hoping for a cooler number on the hope that it might push the Federal Reserve to start cutting interest rates this year. Wages also remained stubborn, with the average hourly pay rising 0.4% monthly. Outside of the labor market, the May reading on ISM manufacturing came in lighter than expected Monday (48.7 versus an estimate of 49.5), while the April factory orders report was a bit ahead of expectations (0.7% vs. 0.65% expected). The May update on ISM services came in very strong on Wednesday (53.8 vs. 51). Technology led all sectors to the upside, followed by health care and communication services. Utilities led to the downside, followed by energy and materials. Earnings season is nearly over, with 99% of S & P 500 companies having reported results. According to data compiled by FactSet, 79% reported a positive earnings surprise and 61% reported a positive sales surprise. No portfolio names reported this week, but we will hear from one last stock next week. Here are the rest of our watchers: 1. Consumer prices: On the economic front, next week will be all about inflation and the Federal Reserve’s ongoing efforts to beat it into submission. We’ll get another look at the rate of inflation with the release of the May consumer price index report on Wednesday. One key data point is the shelter index. As we’ve noted before, shelter costs represent roughly one-third of the headline reading and even more at the core level. It’s an unavoidable cost for most Americans and has remained stubbornly high. As of Friday, economists are looking for a 3.4% annual increase at the headline level and a 3.5% year-over-year increase at the core level, according to FactSet. 2. Fed rate decision: The June FOMC meeting is also Wednesday when the central bank will reveal its decision on rates at 2:00 p.m. ET. As usual, Fed Chair Jerome Powell will hold a press conference shortly after. As of Friday, the market is pricing in — with a 99.5% likelihood, up from 97.7% after the jobs report Friday morning — that the FOMC keeps rates unchanged, according to the CME FedWatch Tool. 3. Producer prices: A day after the CPI report we get the latest on producer prices. The PPI report has less sway with the Fed’s strategy — it cares more about what consumers pay than what companies pay — these input costs do end up in prices. A big increase might force companies to raise their prices down the line in order to protect profit margins. As of Friday, economists are looking for a 2.5% annual increase at both the headline and core level, according to FactSet. 4. Last quarterly Club stock report : Broadcom reports on Wednesday after the closing bell. We’d like to see continued momentum on the AI networking front, plus signs of an inflection in the legacy semiconductor part of the business. In software, we hope management can show progress on the integration of VMWare and how conversations are going with customers. This week, Wall Street showered the chipmaker with praise. 5. Apple’s Worldwide Developers Conference : The major expectation for this closely watched annual event, and what we need to see if Apple is to at least hold onto recent gains, is an update that brings more generative AI features to the iPhone. That would include an enhanced version of Siri and more functionality in first-party apps. Should Apple impress with generative AI implementation, shares can move higher over time on the view that Apple is giving users a bigger reason to upgrade devices than we’ve seen in quite some time. Monday, June 10 No events Tuesday, June 11 Before the bell: Academy Sports and Outdoors (ASO) After the bell: GameStop (GME), Oracle (ORCL), Casey’s General Stores (CASY) Wednesday, June 12 8:30 a.m. ET: Consumer Price Index 2:00 p.m. ET: FOMC Meeting After the bell: Broadcom (AVGO) , Dave & Buster’s Entertainment (PLAY), Oxford Industries (OXM) Thursday, June 13 8:30 a.m. ET: Initial Jobless Claims 8:30 a.m. ET: Producer Price Index Before the bell: Signet Jewelers (SIG), Korn/Ferry International (KFY) After the bell: Adobe (ADBE), RH (RH), AMMO (POWW) Friday, June 14 No events (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Apple CEO Tim Cook is seen at the Apple Worldwide Developers Conference on June 5, 2023, in Cupertino, California.
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