The major U.S. index futures are pointing to a higher opening on Tuesday, with sentiment remaining positive after the major averages ran up to 1-month highs last week. With the markets re-opening after the Memorial Day holiday, activity in the markets could slowly pick up. A domestic report released short while ago showed that personal spending rose robustly in April and personal income growth was in line. Commodities are weaker although the dollar has given back some ground. The domestic markets could also stay tuned to reports on regional business activity and consumer confidence. U.S. stocks rose solidly in the week ended May 27th, as bargain hunting and fairly in line domestic data points offered support to the markets. Last Monday, the major averages moved about in a nervous manner before closing slightly lower amid Fed rate hike chatter. Bargain hunting lifted the averages notably higher on Tuesday. The averages saw further upside on Wednesday amid a positive reaction to a deal to unlock additional bailout funds for Greece. With mixed data and a pullback in oil prices pressuring stocks, the major averages closed mixed on Thursday. Stocks rallied strongly on Friday, ignoring a hint at a June rate hike by Fed Chair Janet Yellen. For the week, the Dow climbed 372.28 points or 2.13 percent to a 2-week high of 17,873, the S&P 500 rose 46.74 points or 2.28 percent to a 1-month high of 2,099 and the Nasdaq Composite ended up 163.94 points or 3.44 percent at a 1-month high of 4,934. Among the sectors, the NYSE Arca Computer Hardware Index rallied 5.62 percent for the week and the Philadelphia Semiconductor Index, the NYSE Arca Broker/Dealer Index and the NYSE Arca Biotechnology Index all gained over 4 percent. Additionally, the KBW Bank Index and the Philadelphia Housing Sector Index added over 3 percent each. On the other hand, the NYSE Arca Gold Bugs Index slumped 8.14 percent. Currency, Commodity Markets Crude oil futures for July delivery are rising $0.24 to $49.57 a barrel after finishing the week ended May 27th at $49.33 a barrel, a 1.9 percent gain for the week. The commodity received support from supply disruptions and production cuts. Gold futures, which slumped $39.10 or 3.12 percent last week, are currently slipping $1.20 to $1,212.60 an ounce. The most actively trading August futures are currently declining $4.70 to $1,212 an ounce. The precious metal has been losing luster for about eight straight weeks, falling to at 3-month low, as the U.S. dollar is riding high on rate hike expectations. Among currencies, the dollar mostly advanced in the week ended May 27th, with the greenback rising 0.97 percent against the euro to $1.1115. At the same time, the dollar added 0.15 percent against its fellow safe haven, the yen, before ending the week at 110.31 yen. The Japanese unit took a hit last week amid hopes that the Shinzo Abe administration will delay the implementation of a sales tax hike amid the domestic deflationary environment. The U.S. dollar is currently trading at 111.17 yen and is valued at $1.1150 versus the euro. Asia The major Asian markets ended mixed, with the Chinese, Hong Kong, Japanese, New Zealand, Singaporean and South Korean markets advancing, while the rest of the major markets retreated. The strong rally by Chinese and Hong Kong stocks reflected hopes that mainland Chinese stocks would be included in the MSCI. The Japanese market found an able ally in a weak yen, which propelled export stocks higher and in turn the broader market. The key Nikkei 225 Index ended higher for the fifth straight session. After a lackluster start and nervous trading till late morning trading, the Nikkei 225 Index recovered and moved steadily higher for the rest of the session, ending up 166.96 points or 0.98 percent at a fresh 1-month high of 17,235. Export, retail, real estate, financial and utility stocks gained ground. However, some housing, food, cement, oil and pharma stocks moved to the downside. China's Shanghai Composite Index rallied 94.17 points or 3.34 percent to 2,917 and Hong Kong's Hang Seng Index added 185.70 points or 0.90 percent before ending at a 1-month high of 20,815. Meanwhile, Australia's All Ordinaries Index languished below the unchanged line throughout the session before ending 25.80 points or 0.47 percent lower at 5,448. The index scaled a 9-month peak in the previous session. Most sectors retreated, dragged lower by consumer staple, energy and telecom stocks. On the other hand, IT and consumer discretionary stocks saw modest strength. On the economic front, preliminary data released by Japan's Ministry of Economy, Trade and Industry showed that industrial production rose 0.3 percent month-over-month in April, smaller than the 3.8 percent rise in March but belying the 1.5 percent drop expected by economists. Annually, industrial output fell 3.5 percent, more than the 1.3 percent decline expected by economists. The Ministry of Internal Affairs and Communications reported that the jobless rate came in at 3.2 percent in April, the same rate as in March and in line with expectations. The number of unemployed people fell 100,000 to 22.4 million in April. A separate report showed that household spending in Japan fell less than expected in April. Housing starts in Japan expanded at the fastest pace in 10 months in April, the Ministry of Land, Infrastructure, Transport and Tourism said. Housing starts grew by a more-than-expected 9 percent year-over-year in April, while economists had expected 4.1 percent growth. A report released by the Australian Bureau of Statistics showed that building approvals rose for the second straight month in April and at a faster rate. Another report showed that the current account deficit of Australia narrowed in the first quarter compared to the previous quarter. Meanwhile, the Reserve Bank of Australia reported that total credit to the private sector in Australia increased in April, in line with expectations. Annually, credit increased at a faster rate. Europe European stocks opened higher but gave back their gains in early trading, as commodities edged lower and economic data from the region remained mixed. The major averages in the region are currently modestly lower. In major corporate news, Volkswagen maintained its full year guidance after reporting declines in first quarter pre-tax profits and revenues. On the economic front, a flash estimate released by Eurostat showed that annual inflation for the eurozone was -0.1 percent in May, in line with expectations. The jobless rate remained at 10.2 percent in April, in line with expectations. Data released by the German Federal Statistical Office showed that German retail sales fell 0.9 percent month-over-month in April, while economists expected a 0.9 percent increase. However, on a year-over-year basis, retail sales increased at a faster rate of 2.3 percent. A separate report showed that the jobless rate in Germany remained steady at 4.2 percent in April. The number of unemployed people eased. Meanwhile, the jobless rate that pertains to May released by the German Federal Labor Agency fell to 6.1 percent compared to the consensus estimate of 6.5 percent. French statistical office INSEE reported that French annual consumer price inflation was at 0.1 percent in May, in line with expectations but slower than the 0.2 percent rate in April. The harmonized index of consumer prices remained unchanged year-over-year but rose 0.3 percent compared to the previous month. U.S. Economic Reports Jobs, consumer and private sector activity data are among the key economic reports due for release in the unfolding week. Among the closely watched reports of the week are the Commerce Department's personal income and spending report for April, the Conference Board's consumer confidence report for May, ADP's private sector payrolls report for May, the Labor Department's non-farm payrolls report for May, the Institute for Supply Management's national manufacturing and non-manufacturing reports for May and MNI Indicators' Chicago region business barometer report for May. Traders may also focus on a few Fed speeches, the S&P/Case-Shiller's house price survey for March, the Federal Reserve's Beige Book report, final estimates of Markit's manufacturing and non-manufacturing PMIs for May, monthly auto sales and the Commerce Department's trade balance report for April. The Commerce Department's construction spending and factory orders reports, both for April, and announcements concerning next week's Treasury auctions of 3-year and 10-year notes and 30-year bonds round up the economic events of the week.
Personal spending in the U.S. increased by more than expected in the month of April, according to a report released by the Commerce Department. The Commerce Department said personal spending jumped by 1.0 percent in April after coming in unchanged in March. Economists had expected spending to climb by 0.7 percent.
The report also said personal income rose by 0.4 percent in April, matching the increase seen in the previous month as well as economist estimates.
At 9 am ET, S&P/Case-Shiller is set to release its house price index for March. The consensus estimate calls for a 0.7 percent month-over-month increase in the house price index for March, the same pace as in the previous month. The annual increase is expected to slow to 5.1 percent from 5.4 percent. MNI Indicators is due to release its Chicago business barometer at 9:45 am ET. Economists expect the business barometer to edge up to 50.7 from 50.4. In April, the barometer unexpectedly fell, although holding above the cut-off level of '50.' The index fell to 50.4 from 53.6, while economists expected a reading of 53.4. New orders grew but at a slower pace and the order backlogs index fell sharply. Also at 10 am ET, the Conference Board is scheduled to release its consumer confidence index for May. Economists expect the index to improve to 97 from 94.2 in April. The consumer confidence index fell to 94.2 in April from a revised 96.1 in March. Economists expected a reading of 96.0. The expectations index fell 4.3 points to 79.3, the lowest reading since November 2013. The Dallas Federal Reserve will release the results of its regional general activity index for May at 10:30 am ET. In April, the index was at -13.9. Stocks in Focus
Office Depot (ODP) announced that its board authorized the buyback of up to $100 million of its stock. Biogen (BIIB) announced that the European Commission granted marketing authorization for FLIXABI, a biosimilar referencing REMICADE and co-developed with Samsung BioLogics, for treating adults with rheumatoid arthritis, Crohn's disease, ulcerative colitis, ankylosing spondylitis, psoriatic arthritis and psoriasis. Separately, Biogen and AbbVie (ABBV) also announced that the U.S. FDA has approved their multiple sclerosis treatment ZINBRYTA. O'Reilly (ORLY) announced that its board has approved to increase its stock buyback authorization by an additional $750 million. Standard & Poor's announced that TransDigm (TDG) will replace Baxalta (BXLT) in the S&P 500 Index after the close of trading on June 2nd, as Shire (SHP) is set to acquire the company. Helen of Troy (HELE) will replace Waste Connections (WCN) in the S&P MidCap 400 Index and Team (TISI) will replace Helen of Troy in the S&P SmallCap 600 Index after the close of trading on May 31st. Brocade (BRCD) will replace MDC Holdings (MDC) in the S&P MidCap 400 Index and MDC Holdings will replace Ruckus Wireless (RKUS) in the S&P SmallCap 600 Index after the close of trading on May 31st.
For comments and feedback contact: editorial@rttnews.com
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.