Wall Street Recoups 2009 Losses, Looks to Week Ahead

It is anticipated that the majority of the economic reports expected in the upcoming week

will show a slight improvement, but analysts are quick to caution against taking this as a

sign that the US economy is firmly on the road to recovery. Coming up on

Monday is the measure of manufacturing in the

href=”http://www.virtualcountries.com/united-states/new-york/” title=”Explore New York at

VirtualCountries.com” target=”_blank” rel=”external noopener noreferrer”>New York area, known as the Empire State index. According to a

survey conducted with by Briefing.com, the Empire State index is likely to have worsened

from the negative 4.6 reading in May, to a negative 5.1 in June. Also on Monday, President

Obama will address the American Medical Association in Chicago, highlighting reform of the

US health care system. The Congressional Budget Office (CBO) will release its estimates on

the controversial health bill proposed by Senator Edward Kennedy.

Indications are that the US housing market is shifting closer to

stabilizing, and building permits and housing starts for May, which will be released by the

Census Bureau on Tuesday, will confirm whether this trend is continuing. The Producer Price

Index (PPI), measuring wholesale inflation, and the reports on industrial production and

capacity utilization as compiled by the Federal Reserve, will both be available on


Wednesday will see the release of May’s Consumer Price Index (CPI) which analysts

anticipate will have fallen to 0.9 percent, following a decline of 0.7 percent in April. The

core CPI index, excluding food and energy prices, is expected to have risen 0.1 percent. The

courier company, FedEx will be releasing its quarterly results on Wednesday morning. This

well established Fortune 500 company is seen as an informal measure of the health of the

economy and it is expected that FedEx shares will have earned 52 cents per share as compared

to a year ago when earnings were $1,45 per share.

The Labor Department’s weekly jobless claims report, indicating the number of new claims

being filed by unemployed Americans, is expected to be around 610,000 as compared to the

previous week’s 601,000. The bankruptcy hearing for General Motors will

take place in New York on Thursday. Also on Thursday, Treasury Secretary Timothy Geithner

will be outlining the Obama Administration’s plans for the restructuring of the US financial

regulatory system before the House Financial Services Committee. As the week draws to a

close, state-by-state unemployment statistics will be released on Friday morning.