The Week Ahead.

The Week Ahead. U.S. stocks finished in positive territory on Monday as investors digested manufacturing data and kicked off an eventful week.

?? DJIA +0.14%, S&P 500 +0.30%, NASDAQ +0.66%?

Last week, stocks ended on a mixed note after important gauges revealed that both consumer and wholesale inflation declined in April.?While the S&P 500 and Dow Jones closed in the red, the tech-heavy Nasdaq pulled itself out of a bear market after posting a fourth straight week of gains.

Economic data was relatively light on Monday. The NY Empire State Manufacturing Index, which measures business conditions in the state, plummeted to -31.8 in May from +10.8 in April—analysts were expecting a print of -5. ?

Meanwhile, the debt ceiling debate wages on. President Biden over the weekend confirmed that the White House and Congressional leaders will meet on Tuesday for a second round of talks—Biden said he remains “optimistic.” House Speaker Kevin McCarthy (R-CA) said on Monday that the White House and congressional Republicans are “far apart.”

U.S. Treasury yields advanced as the debt ceiling worries eased. Ongoing concern over the future path of monetary policy was also on bond traders’ minds. Fed funds futures markets were little changed on Monday, as traders continue to price in a high probability of a Fed pause in June.

Atlanta Fed President Raphael Bostic said in an interview with CNBC on Monday that he would like to see a pause in rate hikes to better assess the state of the economy.?

Looking Ahead

Investors will focus on some important data related to the state of the housing market, the strength of the U.S. consumer, and commentary from Fed officials. Retail sales are slated for release on Tuesday morning and are expected to show improvement for May.

Last week’s action signaled an important need to reevaluate where we believe the market is headed. We mentioned during that time that we were reviewing our model portfolio’s allocation for potential changes. We have determined that a more defensive posture may be warranted. This will be accomplished by tactical asset reallocation and position size of individual holdings. From where we stand, the first half of this year was successful, but now we must reassess and strategize for what lies ahead.?

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?? Today’s Market Dashboard

Economic Data

• NY Empire State Manufacturing Index (May): -31.80, Est.: -3.70, Prior: 10.80

Geopolitical Headlines

• Top Chinese Envoy To Visit Ukraine, Russia On 'Peace' Mission (RFE/RL)
• Turkey will hold a runoff election on May 28, w/ Erdogan in the lead (CNBC)
• U.S. Sees More Indications of 'Burgeoning Defense Relationship' Between Russia, Iran (RFE/RL)
• Beijing cools Taiwan issues ahead of G7 Summit (Asia Times)
• Chinese Warships Circle Japan Ahead of G-7 Summit (USNI)

Other News

• Paul Tudor Jones says the Fed is done raising rates, stocks to finish the year higher from here (CNBC)
• Treasury Secretary Yellen reaffirms U.S. could run out of money to pay bills by early June (CNBC)
• Fed’s Bostic casts doubt on rate cuts this year even if there’s a recession (CNBC)
• Consumer debt passes $17 trillion for the first time despite slide in mortgage demand (CNBC)

Wires via FinancialJuice

• [15:53 ET] US plans to buy 3 million barrels of oil for emergency reserve. WTI Strengthened

Today’s Market Dashboard is a collection of important data covering markets, the economy, and news items we’ve monitored throughout the trading day.

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MCF Capital Management, LLC is an independent, family-run, financial advisory firm that manages investment portfolios for individuals and businesses through Quantitative Market Data Analysis.

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THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INVESTMENT ADVICE.?

???SOURCES:?MarketWatch, Investing.com, CNBC