This Week: Fed policy update, Nike earns, new home sales
A look at some of the key business events and economic indicators upcoming this week:
THE FED SPEAKS
The Federal Reserve delivers an update on the economy and interest rate policy following a two-day meeting of policymakers Wednesday.
Economists had been expecting that the central bank could announce plans after the meeting to begin reducing the Fed’s $120 billion monthly bond purchases, which are helping to lower long-term interest rates. Now analysts say that's less likely because of data showing the economy created only 235,000 jobs in August, after gains averaging around 1 million per month in June and July.
NO SWEAT
Wall Street expects another solid quarterly snapshot from Nike.
Analysts predict the athletic apparel company will report Thursday that its fiscal first-quarter earnings and revenue increased from a year earlier. That would echo the company’s results during the 12 months that ended in May, which included record fiscal fourth-quarter sales in North America. Nike has benefited from strong sales as many retail stores that were closed during the pandemic last year have reopened.
EYE ON HOUSING
The Commerce Department serves up its August tally of new U.S. home sales Friday.
Economists project that sales slowed last month to a seasonally adjusted annual rate of 702,000 homes. While demand for new homes remains strong amid a dearth of previously occupied U.S. homes for sale, economists say surging home prices, construction delays and shortages of building materials and labor will temper sales in coming months.
New home sales, seasonally adjusted annual rate, by month:
March 873,000
April 796,000
May 720,000
June 701,000
July 708,000
Aug. (est.) 702,000
Source: FactSet