The big news this week will take place on Wednesday, when the Federal Reserve votes on whether to raise short-term interest rates to quell inflation. Wall Street expects at least one more rate hike, but investors are particularly interested in what the Fed will say in its post-meeting memo. They will be sifting for any clues as to whether the Fed intends to raise rates later this year.
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Monday, May 8:
EARNINGS TO WATCH: Sotheby's and UAL Corp.
Tuesday, May 9:
EARNINGS TO WATCH: Cisco Systems, Sara Lee, US Airways, and Walt Disney
Wednesday, May 10:
FED MEETING: The Federal Reserve meets today to set the nation's interest-rate policy. Conventional wisdom says the Fed will raise rates one more time to keep inflation at bay. Another reason that rates will almost certainly go higher this month is that the new Fed chairman, Ben Bernanke, has to build credibility as an inflation fighter.
ENERGY INVENTORY: Whether the national average price of gasoline tops $3 a gallon this week will depend on U.S. fuel stockpiles. The Energy Information Administration will reveal the status of the nation's gasoline and crude oil inventories this morning.
EARNINGS TO WATCH: American International Group, Federated Department Stores, and Toyota Motor
Thursday, May 11:
RETAIL SALES: How are consumers handling the twin burdens of rising gas prices and higher interest rates? Wall Street finds out today, when the Commerce Department is scheduled to release data on retail spending in April.
FED SPEAK: A day after the May Fed meeting, two key central bankers–Fed governor Donald Kohn and Michael Moskow, president of the Federal Reserve Bank of Chicago–will give speeches in Chicago. Their remarks could shed light on the Fed's Wednesday discussion.
EARNINGS TO WATCH: EchoStar, J.C. Penney, Kohl's, and Viacom
Friday, May 12:
CONSUMER CONFIDENCE: The University of Michigan will reveal the latest results of its closely followed consumer sentiment index. With gas prices having shot up, don't expect households to be in a cheery mood.
