What To Expect in the Markets This Week

• The Federal Reserve will announce a decision on interest-rate cuts this week, with investors anticipating that the central bank will again lower borrowing costs.

• Remarks from Fed Chair Jerome Powell on Wednesday will give further insight into the future path of interest rates and the economy.

• Investors will also be watching for reports on inflation, retail sales, GDP, home sales, and consumer confidence.

• Earnings reports are scheduled from chipmaker Micron Technology, apparel seller Nike, and package delivery service FedEx.

The Federal Reserve will announce its latest decision on interest rates when it concludes its meeting on Wednesday, with investors widely anticipating the central bank to cut rates again. After the announcement, Fed Chair Jerome Powell will take media questions and will likely provide more details on the economy.

On Friday, the personal consumption expenditures (PCE) report will show whether inflation remains above the Fed’s target level. Revisions to third-quarter gross domestic product (GDP) are also scheduled this week, and investors will be watching reports on retail sales, existing home sales, and consumer sentiment.

Nvidia (NVDA) partner Micron Technology (MU) will issue its quarterly earnings this week, with reports also coming from footwear leader Nike (NKE), business advisors Accenture (ACN), delivery giant FedEx (FDX), and cruise operator Carnival (CCL).

Monday, Dec. 16

Tuesday, Dec. 17

• U.S. retail sales (November)

• Industrial production and capacity utilization (November)

• Business inventories (November)

• Homebuilder confidence index (December)

• Federal Open Market Committee (FOMC) meeting begins

Wednesday, Dec. 18

• Housing starts and building permits (November)

• FOMC interest rate decision

• Federal Reserve Chair Jerome Powell press conference

• Micron Technology, Lennar (LEN), General Mills (GIS), and Toro (TTC) report earnings

Thursday, Dec. 19

• Initial jobless claims (Week ending Dec. 14)

• Gross domestic product (second revision) (Q3)

• Philadelphia Manufacturing Survey (December)

• Existing home sales (November)

• U.S. leading economic indicators (November)

• Accenture, Nike, Cintas (CTAS), FedEx, and Paychex (PAYX) report earnings

Friday, Dec. 20

• Personal consumption expenditures (PCE) index (November)

• Consumer sentiment (final) (December)

• Carnival Corporation and Winnebago Industries (WGO) report earnings
  

Market watchers will be closely following the Federal Reserve this week as it meets for the final time this year. Investors are anticipating that the Federal Open Market Committee (FOMC) will approve another interest-rate cut from the current federal funds rate level of 4.50% to 4.75% when the meeting concludes on Wednesday. It would be the third straight meeting in which the Fed has cut interest rates.

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