Market Digest: FDX, MDU, PWR

Summary

The economic calendar is full this week, with inflation and GDP data due and a lot of Fedspeak, including from Chairman Jerome Powell. Wall Street will continue to absorb the supersized interest-rate cut last week and the debate over the next cut likely will heat up. The Dow Jones Industrial Average ended last week higher by 1.6%, the S&P 500 gained 1.4%, and the Nasdaq was up 1.5%. For the year, the DJIA is higher by 12%, while the S&P 500 and the Nasdaq have both popped by 20%. On the economic calendar, inflation data is due out on Friday. For July, PCE printed at 2.5%. Forecasts call for the pace to slow to 2.2% in August. Core PCE was 2.6% in July. Economists expect a tick higher to 2.7% for August. Meanwhile, Tuesday brings news on Consumer Confidence; Wednesday features New Home Sales; and GDP and Durable Goods Orders hit the tape on Thursday. In addition to PCE, Friday offers updates on Personal Income and Personal Spending. Finally, about 10 Fed officials speak publicly this week, including Chairman Powell, with pre-recorded remarks at a U.S. Treasury conference. On the earnings calendar, Tuesday brings reports from AutoZone and KB Home. On Wednesday, Micron Technology. And on Thursday, Costco, Accenture, and Jabil. Earnings last quarter were 13% higher than in the same quarter last year, which was better than expected. The next reporting season kicks off in mid-October, when the big banks announce results. Last week, mortgage rates dropped again, hitting 6.09% for the average 30-year fixed-rate mortgage. Gas prices fell six cents to $3.18 per gallon for the average price of