THINGS TO WATCH.

Consumer Sentiment

Tomorrow morning’s Conference Board Consumer Confidence reading for June could show a pullback in sentiment amid weak retail sales trends in May and a recent rise in initial weekly jobless claims. Consumers’ assessment of labor market conditions will be closely analyzed given the emphasis placed on the jobs market by the Conference Board’s survey. The University of Michigan’s consumer sentiment survey (final June reading this Friday) prioritizes consumers’ views on inflation.

Bank Stress Tests

On Wednesday, the Federal Reserve will report the results of its examination of the 32 U.S. banks with $100 billion or more of total assets. The exams measure lenders’ ability to withstand crisis economic conditions, including a 10% unemployment rate. Last June, in the wake of the regional banking sector turmoil, the Fed said its stress tests showed the largest U.S. banks had “sufficient capital to absorb more than $540 billion in losses and continue lending to households and businesses under stressful conditions.”

Nike Steps to the Plate

Nike (NKE) delivers quarterly results Thursday with consensus expectations for flat sales growth compared to a year ago. Cost-conscious customers in North America and Europe, economic sluggishness in China, and competition from running shoe upstart Hoka have weighed on the company’s growth trajectory. Investors’ attention will likely be on NKE’s higher-margin direct-to-consumer sales channel trends and new product pipelines tied to the Paris Olympics and UEFA Euro 2024.

May PCE

On Friday morning, Fed officials’ preferred inflation measurement for May will be released. The personal consumption expenditures (PCE) index core deflator is projected to have risen just 0.1% last month after monthly readings of between 0.2% and 0.4% from January through April. On a year-over-year basis, core PCE is expected to have hit a 38-month low of 2.6% in May.