Spotlight On FOMC’s 25 Or 50 Decision, FedEx Earnings, And Salesforce Event

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Central banks will be in the spotlight next week with the Federal Reserve, Bank of England, and Bank of Japan all scheduled to meet to discuss monetary policy and interest rate. Just before the Fed’s FOMC meets, the August U.S. Retail Sales will be released. While that report is expected to show a 0.1% decline on a month-over-month basis, the year-over-year retail sales number is anticipated to be solid. At the time of publication, futures trading implied a 57% probability of a 25-point cut and a 43% probability of a 50-point cut.

The event calendar features a flurry of investor conferences and meetings, including the high-profile Dreamforce event hosted by Salesforce (NYSE:CRM). There will also be earnings reports turned in by General Mills (GIS) (analysis), FedEx (FDX) (analysis), and Lennar (LEN) (full preview). The FedEx (FDX) report will be of high interest across several sectors, as it could delve into expectations for the holiday season.

While recession fears are clearly back in the mix. Seeking Alpha analyst Dilantha De Silva thinks the strength of the U.S. economy and a few other macroeconomic variables suggest that the U.S. is most likely to see slow and steady growth in the next few quarters. In particular, De Silva is focused on homebuilders that have gone out of favor among investors in the last two years due to the unfavorable rate environment. “Since large-scale homebuilders have continued to perform well, I believe the best opportunities are hidden among small companies that are likely to benefit from the positive impact of rate cuts,” he highlighted.



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