Key Takeaways

  • China's central bank announces decision on interest rates on June 21.
  • Michigan Consumer Sentiment Index releases final June data on Friday.
  • Nike reports earnings next Friday

The past week started off promising for markets, but as the number of new coronavirus cases spiked across the U.S., all three major U.S. indexes gave up their earlier gains. Out of the S&P's 11 sectors, tech managed gains, overall, with energy and financials losing their momentum. The rise in new cases has caused cities and states around the country have begun to slow or pause their re-openings. Apple has closed its retail stores in several states, and Microsoft announced it is permanently closing all of its retail stores.

Coming up this week, we'll be looking at the U.S. unemployment rate, the Eurozone's manufacturing PMI's, and how the housing market has endured through the crisis.

Here's a look at asset classes returns year to date:

Economic Events This Week

Sunday, June 28

  • Japanese Retail Sales (May)

Monday, June 29:

  • Brazilian Unemployment Rate (May)
  • U.S. Pending Home Sales (May)
  • Chinese Manufacturing Purchasing Managers' Index (PMI) (June)
  • Chinese Non-Manufacturing PMI (June)

Tuesday, June 30:

  • U.K. Gross Domestic Product (GDP) (Q1)
  • Eurozone Preliminary Consumer Price Index (CPI) (June)
  • Canadian GDP (April)
  • U.S. Chicago PMI (June)
  • U.S. S&P/CS Housing Price Index (April)
  • U.S. Conference Board Consumer Confidence (June)
  • Japan Tankan Large and Non-Large Manufacturer's Indexes (Q2)
  • Chinese Caixin Manufacturing PMI (June)

Wednesday, July 1:

  • Market Holiday in Hong Kong for Special Administrative Region Establishment Day
  • Market Holiday in Canada for Canada Day
  • U.K Nationwide Housing Price Index (HPI) (June)
  • German Manufacturing PMI (June)
  • German Unemployment (June)
  • French Manufacturing PMI (June)
  • Italian Manufacturing PMI (June)
  • Eurozone Manufacturing PMI (June)
  • U.K. Manufacturing PMI (June)
  • U.S. ADP Nonfarm Employment (June)
  • U.S. ISM Manufacturing PMI (June)
  • U.S. Federal Open Market Committee Meeting Minutes Are Released

Thursday, July 2:

  • Eurozone Unemployment Rate (June)
  • U.S. Average Hourly Earnings (June)
  • U.S. Trade Balance (May)
  • U.S. Nonfarm Payrolls (June)
  • U.S. Weekly Initial Jobless Claims
  • Japanese Services PMI (June)
  • Chinese Caixin Services and Composite PMI (June)

 Friday, July 3:

  • U.S. Market Holiday for Independence Day
  • Eurozone Services and Composite PMI (June)
  • U.K. Services and Composite PMI (June)

U.S. Unemployment

With extended unemployment benefits expiring at the end of July, the rate at which U.S. unemployment declines will be critical for many families around America. The Bureau of Labor Statistics (BLS) has had a statistical difficulties recently, as the survey used to measure unemployment is not made to measure such large and rapid changes in the labor market. Economists now believe that unemployment was somewhat higher in April and May than the numbers originally suggested, but the unemployment rate did still drop between April and May. Continued paychecks are the key to continued consumer spending, the main engine of the U.S. economy. Consumer spending hit a record high in May after collapsing to a record low in April.

Eurozone and U.K. PMIs

The Eurozone and the U.K. release manufacturing Purchasing Managers' Indexes (PMIs) on July 1, and release Service PMIs on July 3. These index, based on surveys of managers across an array of industries, can help measure the pace of the recovery. Manufacturing PMIs are released on July 1, and Service PMIs are released on July 3, so their rate of recovery can be looked at together to see how the different parts of the economy are recovering. The preliminary "flash" PMI results were significantly better than economists expected, a good sign for recoveries, so keep an eye on the full report when its released to see if that bears out in the full report.

S&P/Case-Shiller Home Price Index

The S&P/Case-Shiller Home Price Index is an index of housing prices across the United States. There are two index, one that measures the housing prices in 10 metropolitan area across the U.S., and one that measures them across 20. The 20-metro index for April is released on June 30. April was the first full month of lockdown, when unemployment peaked, and was when the number of new coronavirus cases originally peaked before the current resurgence. Therefore, understanding the housing market at that point is critical. Because housing equity is the primary store of middle-class wealth in America, this index can help elucidate the damage done by the current crisis to the wealth of America's families.

Facebook in Focus

FB will be a key stock to watch this week, as more big advertisers, including Unilever, Verizon, and Patagonia, have pulled their advertising from the social network for the rest of the year citing hate speech and polarized politics as the key reasons for its decision. Shares of FB fell 8.5% on Friday.