Federal Reserve Chair Jerome Powell is set to address the Thomas Laubach Research Conference, focusing on vital research in monetary policy and the economy. The conference aims to provide important academic insights for the Federal Reserve’s periodic review of its monetary policy framework. Meanwhile, Federal Reserve Board Governor Michael Barr will deliver opening remarks at the virtual 2025 Northeast/Mid-Atlantic Small Business Credit Symposium, hosted by various Federal Reserve Banks including New York, Cleveland, Philadelphia, Boston, and Richmond.
In corporate news, Walmart is anticipated to see an increase in its first-quarter revenue, buoyed by sustained demand for groceries and essential items across diverse income groups. Investors will be keen to hear how the company plans to navigate existing tariff challenges, especially those impacting China, as well as any revisions to its forecasts and insights on consumer sentiment.
Looking at economic indicators, the Producer Price Index (PPI) for final demand is projected to rise by 0.2% in April, rebounding from a 0.4% decline in March. Year-over-year, the PPI might show a 2.5% increase, slightly down from the 2.7% rise recorded in March. The core PPI, which excludes food and energy, is also expected to gain by 0.3% after a dip of 0.1% the previous month, indicating a 3.1% increase compared to last year.
Additionally, initial jobless claims are expected to rise by 1,000 to 229,000 for the week ending May 10, while continued claims are predicted to increase to 1.890 million. Retail sales are projected to hold steady in April, following a robust 1.4% gain in March, with a slight 0.3% increase anticipated when excluding automobile sales. Industrial production is expected to show a 0.2% growth for April after a previous decline.
In company earnings, Deere is predicted to report a decrease in second-quarter sales and profits, while Applied Materials is set to announce a rise in revenue, driven by strong demand for chipmaking equipment amid ongoing geopolitical challenges.
Investors are especially interested in Take-Two Interactive’s annual bookings forecast as the company prepares to release its fourth-quarter earnings. The highly anticipated “Grand Theft Auto VI” has been pushed back beyond fiscal 2026, but the company has an exciting lineup planned for the year, including “Borderlands 4” and “Mafia: The Old Country.”
On the international front, Alibaba is poised to report an increase in quarterly revenue, buoyed by consistent demand. Observers will closely watch for comments related to its cloud business and AI initiatives amid ongoing U.S.-China trade tensions. Meanwhile, German footwear brand Birkenstock is expected to report rising revenues due to sustained interest in its product lines, despite potential tariff-related uncertainties impacting consumer sentiment.
In Canadian economic data, an increase in housing starts is anticipated, rising to an annualized rate of 227,500 units in April from 214,200 units in March. Conversely, wholesale trade figures for March may show a slight decline of 0.3%.
In Latin America, Brazil’s retail sales for March are projected to increase by 1.0% after a 0.5% uptick in February, although a slight annual drop of 0.5% is expected. Additionally, Mexico’s central bank is likely to lower its key interest rate to 8.50%, indicating a proactive approach to fostering economic growth.
Overall, these developments reflect a complex economic landscape where various sectors and regions exhibit both challenges and opportunities for resilience and growth, hinting at a potential for positive recovery across multiple fronts.