What to Expect in the Week Ahead (GME, NIO and DOCU Earnings; Apple WWDC 2023, Fed Goes Quiet)

It will be a relatively quiet week ahead of major inflation data and a Federal Reserve decision the following week, but still with several earnings and economic data releases to look forward to.

Investors had largely shrugged off any potential market uncertainty related to the debt ceiling over the past week with the market's focus instead focusing to renewed enthusiasm for tech stocks, which barreled higher to close out May.

The economic data highlights of the week will be the Census Bureau's durable goods report for April and the Institute for Supply Management's Services Purchasing Managers' Index for May on Monday.

The Reserve Bank of Australia will announce a monetary-policy decision on Tuesday. Futures markets are pricing in roughly one-in-three odds of a 12th-straight interest-rate increase.

The Census Bureau reports factory orders, which include durable and nondurable goods, for April. Total orders are expected to increase 0.6% month over month after a 0.9% gain in March.

The Institute for Supply Management releases its Services Purchasing Managers' Index for May. The consensus estimate is for a 52.1 reading, roughly even with the April data. Resilient consumers, aided by a healthy labor market, have helped the index post only one reading below the expansionary below of 50 since May of 2020.

The Reserve Bank of Australia announces its monetary-policy decision. Traders are pricing in a 33% chance that the central bank will raise its cash-rate target a quarter of a percentage point, to 4.1%. The RBA has raised its key interest rate 11 times since April of last year, bringing the cash-rate target from 0.1% to 3.85%.

The Department of Labor reports initial jobless claims for the week ending on June 3. Claims averaged 236,000 in May and have normalized to historical averages after an 18-month period of being below trend. Despite this, job openings surprised Wall Street this past week by surging past the 10 million mark after two months below than that level.