Wall Street heads into a busy week with investors focused on inflation data and the long-awaited IPO of SpaceX. Here’s what’s happening …
- It’s a light week for earnings, with only a few big names of importance. This morning, numbers are due from Caseys General Stores, J.M. Smucker Company, and Academy Sports, followed Wednesday by Oracle, ICON, and Chewy. Thursday reports are expected from Adobe, Lennar, and RH, followed by a quiet Friday. *
- All eyes are on Wednesday’s inflation report, when the CPI (Consumer Price Index) for May lands from the Bureau of Labor Statistics. Expectations look pretty tame, with CPI seen rising around 0.1% to 0.5% month over month. Even if it comes in near the top of that range, it would still be a step down from April’s hotter 0.6% pace. The big reason: gas prices were mostly steady throughout the month, while softer prices in cars and apparel could help offset stickier costs in shelter, household goods, and airfare. Bottom line: if CPI cools as expected, that could give the Fed a little more room to stay patient on rates at its June meeting. If it runs hot, expect the rate-cut debate to get pushed out again. **
- SpaceX’s initial public offering is well oversubscribed, according to people familiar with the matter, as demand builds for a potentially record-setting debut this week. Banks leading the offering by Elon Musk’s rocket, satellite and artificial intelligence company are expected to stop taking orders from institutional investors on Wednesday after the market closes in New York at 4 p.m. SpaceX’s IPO, the largest ever, is expected to be priced June 11 and trade the following day. The company is offering 555.6 million shares at $135 each, which would raise about $75 billion, and value it at about $1.8 trillion. The company has disclosed new sources of revenue in recent weeks, emphasizing its AI clout. Last Friday, SpaceX announced a deal with Alphabet Inc.’s Google that would see the Gemini AI model maker pay $920 million a month as part of a cloud services agreement set to run through 2029. ***
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