It seems that every time someone from the Federal Reserve Board speaks, the stock market sells off. In fact, many are blaming last week's market shocks on the frank way in which Fed officials, led by new Chairman Ben Bernanke, have been communicating their concerns about inflation. This week, several Fed leaders are hitting the road, speaking at a number of functions at which they will share their thoughts about the health of the economy. So brace yourself for another bumpy week on Wall Street.
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Monday, June 12:
FED SPEAK: Today, several Fed members will be delivering speeches on the economy and monetary policy. Bernanke is scheduled to give an address at Georgetown University in Washington, D.C. Richard Fisher, president of the Federal Reserve Bank of Dallas, will be in Austin to address the state of the global economy. Fed governor Mark Olson will deliver remarks at a banking conference in Florida. Fed governor Susan Schmidt Bies will address the Financial Women's Association conference in Washington, D.C. And Sandra Pianalto, president of the Federal Reserve Bank of Cleveland, will be in Orlando to discuss the health of the U.S. economy.
EARNINGS TO WATCH: Lehman Brothers
Tuesday, June 13:
WHOLESALE INFLATION: The Labor Department will report on the May results of the producer price index, a key gauge of inflation at the wholesale level. Pay close attention to so-called core PPI, which strips out volatile energy and food costs. Last week, Bernanke said core inflation was at the upper end of his comfort zone.
MORE FED SPEAK: Bernanke will speak about the consumer economy at a conference in Washington, D.C.
EARNINGS TO WATCH: Best Buy, Goldman Sachs, and World Wrestling Entertainment
Wednesday, June 14:
RETAIL INFLATION: Today, the Labor Department will report on the May results of the consumer price index, a closely followed measure of retail inflation. Again, pay close attention to the core inflation rate.
BEIGE BOOK: The Federal Reserve Board will release its so-called Beige Book report, an anecdotal survey of the health of the economy in each Fed district.
EVEN MORE FED SPEAK: Dallas Fed president Richard Fisher will share his thoughts on the health of the U.S. economy at a gathering in Corpus Christi, Texas. Meanwhile, Fed governor Susan Schmidt Bies will address a Mortgage Bankers Association conference in California.
Thursday, June 15:
CAPACITY UTILIZATION: Inflation typically becomes a threat once the economy is growing so fast that output is reaching capacity. Today, the Fed will release its May capacity utilization report, which tracks how much slack exists in the nation's manufacturing sector.
G-8 MEETING: The leaders of the so-called Group of Eight nations–which include the United States, Canada, France, Germany, Italy, Japan, Russia, and the United Kingdom–will meet in St. Petersburg, Russia.
EMPIRE STATE INDEX: The Federal Reserve Bank of New York will release its Empire State index, which tracks the health of factory activity in New York State.
YET MORE FED SPEAK: Bernanke will be in Chicago to address the Economic Club of Chicago on the topic of energy. Meanwhile, Cathy Minehan, president of the Federal Reserve Bank of Boston, will speak about the global economy at a conference in Massachusetts.
EARNINGS TO WATCH: Bear Stearns, KB Home, Pier 1 Imports, and the Progressive Corp.
Friday, June 16:
CONSUMER CONFIDENCE: The University of Michigan will reveal its preliminary assessment of household sentiment for the month of June.
STILL MORE FED SPEAK: Today, William Poole, president of the St. Louis Fed, will speak at a conference in South Korea. Meanwhile, Fed governor Donald Kohn, the nominee to become vice chairman of the Fed, will address an economic conference in Massachusetts.
