What to Expect in the Week Ahead ( FDX and NKE Earnings; PCE Data)

Earnings season will wind down this week ahead of the Christmas holiday, but there is a light flurry of earnings reports and economic data for investors to watch for.

FedEx is expected to grow its profits but report lower revenues when it delivers its fiscal second quarter 2024 financial results after the closing bell.

Wall Street analysts expect the package delivery company to report earnings per share (EPS) of $4.13, up almost 30% from the year-ago quarter's $3.18. Revenue, however, is expected to be 2.1% lower year-over-year, falling from $22.81 billion to $22.33 billion.

Micron is expected to hand down strong guidance when it reports its fiscal first quarter financial results on Wednesday, December 20, 2023, analysts at UBS believe.

Ahead of Micron's report, the analysts awarded the stock a 'Buy' rating and raised their price target from US$76 to US$90. For 1Q, the analysts now expect a loss per share of $1 on revenue of $4.69 billion, compared to Wall Street estimates of a loss of $1.01 on revenue of $4.52 billion.

Nike earnings will be in focus Thursday, about a month after the footwear and apparel retailer's report made a pair of changes to its executive team in an effort to enhance its brand appeal.

The Federal Reserve's preferred inflation gauge will be on deck this week as investors seek further confirmation price pressures are easing, after a dovish pivot from the central bank pushed the Dow Jones Industrial Average into record territory.

The November personal consumption expenditures index, set for release on Friday, will come after the consumer and the producer price indexes last week showed the Fed's efforts to cool inflation are taking hold. That added to investor confidence that the Fed can start cutting rates.

The PCE is expected to show the trend is intact. Bank of America said it expects the core PCE, which strips out food and energy prices, will gain just 0.2% for the month, and rise just 3.4% on a yearly basis. Notably, it would suggest a six-month annualized inflation of 2% — which is also the Fed's target.