The Week Ahead: Impact of Jobs Report and RH Earnings
Retail sales data, the producer price index, and industrial production reports are due in the coming week.
Adding to the concern that the economy is slowing, the U.S. jobs report showed an addition of 75,000 new jobs in May, well below the three-month average of 151,000. The unemployment rate held steady at its near 50-year low of 3.6%, and hourly wage growth leveled off at just over 3% for the year, after years of steady increases.
The report may give the Federal Reserve more reason to think that the U.S. economy is slowing, resulting in an interest-rate policy shift as it prepares for a policy meeting on June 18 and 19. Last month, Fed officials downplayed speculation of a rate cut this summer, but a darker economic outlook could prompt a change of course.
Gabrielle Dibenedetto does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.