MARKET RECAP at 4 pm ET

Stocks rose, with the S&P 500 hitting a

record high, boosted by a surge in Nike

and banking shares. Treasury yields

jumped as weaker-than-expected

inflation data eased worries about a

sudden tapering in stimulus by the

Federal Reserve. The dollar steadied,

while gold edged higher. Oil prices

surged on expectations of strong

demand.

Coming Up - On Monday

Federal Reserve Bank of New York

President John Williams is expected

to participate in a panel before the

virtual "Bank for International

Settlements Andrew Crockett Memorial

Lecture" event. Federal Reserve Bank

of Philadelphia President Patrick

Harker is scheduled to speak on

"Fintech Opportunities and

Responsible Innovation for Community

Banks" before virtual Federal Reserve

Innovation Office Hours Fireside Chat.

Federal Reserve Vice Chair for

Supervision Randal Quarles is

expected to speak on "Central Bank

Digital Currency" before the 2021 Utah

Bankers Association Annual

Convention, in Sun Valley, Idaho.

The Mobile World Congress, the

telecoms industry's biggest annual

gathering, begins. The event is

scheduled to end on July 1.

Mexico's trade balance data is

scheduled to be released.

PROMOTION

LIVECHAT-REUTERS GLOBAL

MARKETS FORUM

Mike Dolan, Reuters Editor at Large,

Finance & Markets, takes a look at the

major themes and key events to watch

in the week ahead. (0600 ET/1000

GMT) To join the conversation, click

here

KEY ECONOMIC EVENTS

Dallas Fed Manufacturing Business Index for Jun 1030 -- 34.90

Events ET Poll Prior

STOCKS Close %Chng Yr-high Yr-low Chng

DJIA 34438.58 239.99 0.71 35091.56 24971.03

Nasdaq 14360.39 -9.32 -0.06 14414.46 12397.05

S&P 500 4280.74 14.25 0.33 4271.28 3662.71

Toronto 20230.26 15.14 0.07 20295.18 15144.42

FTSE 7136.07 26.10 0.37 7217.54 6397.24

Eurofirst 1767.43 2.42 0.14 1776.51 1521.71

Nikkei 29066.18 190.95 0.66 30714.52 27002.18

Hang Seng 29288.22 405.76 1.40 31183.36 27079.24

TREASURIES Yield Price

10-year 1.5258 -12 /32

2-year 0.2700 0 /32

5-year 0.9263 -3 /32

30-year 2.1522 -42 /32

FOREX Last % Chng

Euro/Dollar 1.1940 0.08

Dollar/Yen 110.75 -0.10

Sterling/Dollar 1.3891 -0.22

Dollar/CAD 1.2297 -0.20

TR/HKEX RMB 97.80 -0.04

COMMODITIES ($) Price Chng % chng

Front Month Crude /barrel 73.99 0.69 0.94

Spot gold (NY/oz) 1779.20 4.02 0.23

Copper U.S. (front month/lb) 0.0430 -0.0001 -0.57

CRB Index Total Return 223.62 0.96 0.43

S&P 500 Price $ Chng % Chng

GAINERS

Nike Inc 153.79 20.53 15.11

Carmax Inc 127.30 7.87 6.59

Occidental Petroleum Corp 32.88 1.14 3.59

LOSERS

FedEx Corp 292.58 -10.36 -3.42

Waters Corp 336.90 -7.68 -2.23

Caesars Entertainment Inc 102.43 -2.30 -2.20

KEY RESULTS

No major S&P 500 companies are scheduled to report for the day.

Workers prepare an entrance for the Mobile World Congress (MWC) at Fira de Barcelona, in

Barcelona, Spain, June 25. REUTERS/Albert Gea

2

The Conference Board is expected to

show the consumer confidence index

inched up to 119.0 in June, from 117.2

in May on Tuesday. The ADP National

Employment Report on Wednesday is

expected to show private payrolls

rose 600,000 in June, after surging to

978,000 in May. On Thursday, the

Labor Department is scheduled to

release initial claims for state

unemployment benefits for the week

ended June 26. It is also expected to

release data for continued jobless

claims for the week ended June 19.

The Institute for Supply Management is

expected to show manufacturing PMI

rose to a reading of 61.0 in June,

following a reading of 61.2 in the

previous month. On the same day, the

Commerce Department is expected to

show construction spending rose

0.4% in May, after gaining 0.2% in

April. On Friday, the Labor Department

is likely to show nonfarm payrolls

increased to 675,000 in June, after

rising 559,000 in May. Private payrolls

are likely to have risen to 580,000 in

June, after rising 492,000 in the

previous month. The unemployment

rate is expected to have fallen to 5.7%

in June, from 5.8% in the earlier month.

Average hourly earnings likely dipped

to 0.3% in June from 0.5% in May. The

Commerce Department is expected to

release trade deficit data for May. It is

likely to have widened to $71.3 billion

compared with $68.9 billion in April.

The Commerce Department is

expected to show factory orders rose

1.5% in May, after falling 0.6% in April.

Micron Technology Inc is expected to

post third-quarter earnings on

Wednesday. The memory chipmaker is

expected to post a rise in quarterly

revenue as a pandemic-driven uptick in

the use of AI and 5G tech-supporting

devices drove demand for its chips.

Analysts will look out for commentary

about chip shortage and pricing.

Walgreens Boots Alliance Inc is set

to report its third-quarter results on

Thursday when investors will focus on

any comments from the company

regarding benefit from COVID-19

vaccine administration, and its 2021

forecast.

Alimentation Couche-Tard Inc is

expected to post fourth-quarter

earnings on Wednesday. The

Canadian convenience store chain is

likely to post an increase in revenue,

boosted by strong demand for tobacco

products, beverages and groceries.

Profit is expected to fall on weak

margins in its fuel business. Investors

will look out for comments on current-

quarter trends and its acquisition plans.

On Wednesday, top U.S. independent

oil producer ConocoPhillips is

scheduled to provide a mid-year look at

its operations after closing the

acquisition of Concho Resources Inc.

Investors will look for clues to dividends

and divestitures.

Citigroup Inc will host a virtual

conference on Wednesday to look at

trends and disruption in politics,

economics, finance and innovation.

Speakers include Citi's senior

management team, economists,

strategists and industry experts.

Statistics Canada is expected to

release the country's gross domestic

product (GDP) data on Wednesday.

The country's GDP is likely to have

fallen to 0.9% in April, after a 1.1% rise

in March. Producer prices data for

May is expected to be released on

Wednesday. The country's trade

balance, manufacturing PMI and

building permits data for May are

scheduled for release on Friday.

Brazil's jobless rate for April is

expected to be released on

Wednesday. The country's IGP-M

Inflation Index for June is scheduled

to be released on Tuesday, the

country's trade balance and

manufacturing PMI for June are due

on Thursday, and industrial output for

May on Friday.

Coming Up - Week Ahead

A file photo of job seekers and recruiters gathering at TechFair in Los Angeles, California, U.S.,

March 8, 2018. REUTERS/Monica Almeida

3

The S&P 500 ended the week at

record high, lifted by Nike and several

banks, while weaker-than-expected

inflation data eased worries about a

sudden tapering in stimulus by the

Federal Reserve. Nike surged to an all-

time high and closed up 15.11% after

the sneaker maker forecast fiscal full-

year sales ahead of Wall Street

estimates, helping the Dow lead

among the three main indexes. Bank

of America jumped 2.23% and Wells

Fargo gained 2.67% after the Fed

announced big banks have cleared

stress test and will no longer face

pandemic-related restrictions on buying

back stock and paying dividends. The

S&P 500 financials index rose 1.25%

to 614.76. Investors were also girding

for potentially the biggest trading event

of the year, as FTSE Russell

reconstitutes its indexes which could

reflect a wild trading year marked by

the pandemic and a "meme" stock

craze. The Dow Jones Industrial

Average was up 0.71% at 34,438.58

points, while the S&P 500 gained

0.33% to 4,280.78. The Nasdaq

Composite dropped 0.06% to

14,360.39. For the week, the S&P rose

2.74%, the Dow added 3.44% and the

Nasdaq gained 2.35%.

The yield of the benchmark 10-year

Treasury jumped above 1.50% to

close out a week in which yields

notched their largest weekly gains

since March. The moves higher came

after the Federal Reserve's main

inflation reading rose 3.45%, the most

in 29 years, as supply constraints and

increased demand for services helped

lift prices in May. Overall, consumer

spending remained flat last month,

following an upwardly revised 0.9%

jump in April. The pace of inflation will

not likely be enough to prompt the Fed

to deviate from its plan to raise interest

rates twice in 2023 or to begin tapering

its support of the bond market, analysts

said. 10-year notes fell 12/32 to yield

1.5258%. 30-year bonds were 1-11/32

lower, yielding 2.1529%.

The U.S. dollar steadied after tamer-

than-expected producer price inflation,

with investors continuing to evaluate

whether that the Federal Reserve will

act sooner to snuff out inflation if it

persists. The dollar index against a

basket of currencies was 0.03% lower

at 91.79, after dropping to 91.524. The

British pound fell 0.23% on the day to

$1.3890, weakening further a day after

the Bank of England made no changes

to monetary policy.

Oil prices climbed to their highest since

October 2018, putting both

benchmarks up for a fifth week in a row

on expectations demand growth will

outstrip supply and OPEC+ will be

cautious in returning more crude to the

market from August. "Crude prices

rallied on an improving demand outlook

and over expectations the market will

remain tight as OPEC+ is likely to only

deliver a small boost to output at the

July 1st ministerial meeting," said

Edward Moya, senior market analyst at

OANDA. Brent futures rose 0.74% to

$76.12 a barrel, while U.S. crude rose

0.94% to $73.99 a barrel. Brent hit

$76.18 and U.S. crude touched $74.05,

the highest levels since October 2018,

earlier in the session.

Gold edged higher, after stagnant U.S.

consumer spending tempered bets for

early monetary policy tightening by the

Federal Reserve, setting bullion on

track for its first weekly gain in four.

"Gold has benefited from the lower-

than-expected inflation print as

concerns at the margin have eased

over a sooner-than-expected timetable

for tapering," said Suki Cooper, an

analyst at Standard Chartered. The

$1,770 per ounce level is a support in

the near term, Cooper said, with

resistance at the 100-day moving

average. Spot gold inched 0.22%

higher to $1,779.06 per ounce. U.S.

gold futures were 0.14% higher at

$1,779.10 an ounce.

Market Monitor

A file photo of the back of the the "Fearless Girl" statue pictured at the New York Stock Exchange

building in Manhattan in New York City, New York, U.S., January 28, 2021. REUTERS/Mike Segar

4

Top News

Amazon, Google face formal fake

review inquiry in Britain

Britain's competition regulator started a

formal investigation into whether

Amazon and Google may not have

done enough to prevent or remove fake

reviews. Along with regulators in the

United Sates and the European Union,

the Competition and Markets Authority

(CMA) has stepped up its scrutiny of

big tech firms in recent years. The

British regulator said it will gather more

information to decide if the firms may

have broken consumer law by taking

insufficient action to protect shoppers.

Both Google and Amazon said they

were continuing to assist the CMA. The

regulator said it was also concerned

that Amazon's systems had failed

adequately to prevent and deter some

sellers from manipulating product

listings, through for example co-opting

positive reviews from other products.

The CMA said it has not reached a

view on whether Amazon and

Alphabet's Google have broken the

law. However, if it concludes they have

broken consumer protection law, it can

take enforcement action ranging from

securing formal commitments to

change the way they deal with fake

reviews or escalating to court action.

Nike shares hit record high as

sales get post-lockdown boost

Shares of Nike surged over 15% to a

record high after the sportswear giant

forecast full-year sales of more than

$50 billion, riding on pent-up demand

for sneakers and athletic gear from

U.S. shoppers. The company's fourth-

quarter revenue also nearly doubled,

topping $12 billion for the first time and

overshadowing a weaker-than-

anticipated performance in its fast-

growing China market. A rapid

vaccination drive and the easing of

restrictions in Europe and the United

States have encouraged people to go

on a shopping spree, unleashing

demand for expensive items, including

sneakers. Those factors helped Nike

more than make up for weak China

sales, which were hit by calls to boycott

global brands for their comments

around forced labor in Xinjiang. At least

13 brokerages raised their price

targets, with Stifel's $213 target the

highest on the Street. The median

target is $175. Nike's shares ended

15.11% higher at $153.79, after hitting

an all-time high of $154.18 earlier.

Biden's EV charging push boosts

established automakers taking on

Tesla

President Joe Biden's plan to spend

billions on charging networks in the

U.S. could encourage more Americans

to buy electric vehicles, giving General

Motors and Ford Motor much needed

fuel in the battle against Tesla. The

bipartisan $1.2 trillion infrastructure

framework, includes $7.5 billion

spending plans to boost EV charging

stations. However, details of the plan

still need to be finalized and any bill

must be passed by both houses of

Congress. The funds are half of $15

billion Biden had sought for EV

charging stations. In a 2018 report,

consultancy firm McKinsey estimated

that the United States will need about

$11 billion of capital investment by

2030 to deploy the 13 million chargers

needed for the country's EVs.

"Effective legislation should include

investments in charging infrastructure,

particularly in urban areas and along

highway corridors, that will help give

consumers even more confidence to

buy electric," GM said in a statement.

Meanwhile, a bipartisan $1.2 trillion

U.S. infrastructure agreement would

boost the rollout of electric buses, but

falls way short of what transit experts

and school districts say is needed to

upgrade the country's bus fleet to

battery power. To read more, click

here

Branson's Virgin Galactic cleared for

takeoff as space tourism race heats

up

Billionaire Richard Branson's

spaceship company Virgin Galactic

said it received approval from the U.S.

aviation safety regulator to fly people to

space, turning up the pressure on rivals

in the nascent and expensive space

tourism sector. The approval from the

Federal Aviation Administration (FAA)

comes at a critical time for Branson as

his space venture faces off against

Amazon.com founder Jeff Bezos' Blue

Origin and Tesla boss Elon Musk's

SpaceX. Bezos, Branson and Musk

A file photo of the logo of Nike sportswear maker seen at a company's store at Tbilisi Mall in Tbilisi,

Georgia, April 22, 2016. REUTERS/David Mdzinarishvili

5

have been investing billions of dollars

on their rocket startups. Branson, who

is reportedly flying to space himself in a

bid to beat rival billionaire Bezos to the

final frontier, received the green light

just a month after a successful test

flight. The company has said it has

more than 600 reservations for 90-

minute flights that include several

minutes of weightlessness, priced at

$250,000 a ticket.

Facebook rejects talks with

Australia publisher, may test

online law

Australia's competition watchdog is

looking into a claim that Facebook

refused a publisher's request to

negotiate a licensing deal, the regulator

told Reuters, setting the stage for the

first test of the world's toughest online

content law. The Conversation, which

publishes current affairs commentary

by academics, said it asked Facebook

to begin talks as required under new

Australian legislation that requires the

social media firm and Google to

negotiate content-supply deals with

media outlets. The knockback could

present the first test of a controversial

mechanism unique to Australia's effort

to claw back advertising dollars from

Google and Facebook: if they refuse to

negotiate licence fees with publishers,

a government-appointed arbitrator may

step in. In a statement responding to

Reuters questions, Facebook's head of

news partnerships for Australia,

Andrew Hunter, said the company was

"focused on concluding commercial

deals with a range of Australian

publishers".

U.S. Supreme Court curbs

TransUnion 'terrorist list' lawsuit

The U.S. Supreme Court narrowed the

scope of a class action lawsuit against

TransUnion in which thousands of

people sought damages after the credit

reporting company flagged their names

as matching some on a government list

of suspected terrorists and drug

traffickers. The justices ruled in

TransUnion's appeal of a lower court

decision that had upheld a jury verdict

against the Chicago-based company in

the lawsuit and had ordered it to pay

$40 million in damages. The 5-4

decision, authored by conservative

Justice Brett Kavanaugh, stopped short

of tossing out the jury verdict, but found

there was insufficient evidence to show

that all of the plaintiffs had been

harmed by TransUnion's conduct,

meaning the amount of damages will

be reduced. There were 8,185 class

members in the litigation whose names

matched ones on the government list.

At trial it was established only that

TransUnion had revealed that

information publicly on 1,853 of them.

The other 6,332 did not experience a

"concrete injury," thus lacked the

necessary legal standing to sue,

Kavanaugh wrote.

Panasonic sells Tesla

stake for $3.6 billion

Panasonic sold its stake in electric car

maker Tesla for about $3.61 billion in

the year ended March, a spokesperson

for the Japanese company said. The

sale comes as the conglomerate is

seeking to reduce its dependence on

Tesla and raise cash for growth

investment. Panasonic's battery

business is dominated by Tesla, but

the two firms have had a tense

relationship at times. Panasonic bought

1.4 million Tesla shares at $21.15 each

in 2010 for about $30 million. That

stake was worth $730 million at the end

of March 2020. The shares have

gained almost seven fold since then

and closed up 3.5% at $679.82 apiece

on Thursday. The stake sale will not

affect the partnership with Tesla, the

Panasonic spokesperson said, and

was made as part of a review of

shareholdings in line with corporate

governance guidelines.

U.S. pauses distribution of Lilly's

COVID-19 antibody combination

therapy

U.S. health officials paused the

distribution of Eli Lilly's COVID-19

antibody cocktail therapy as it failed to

show effectiveness against the

coronavirus variants that were first

identified in Brazil and South Africa.

The decision by the U.S. Department of

Health and Human Services (HHS) is

based on laboratory analyses that

showed Lilly's dual antibody therapy -

bamlanivimab and etesevimab - was

not active against either variants. The

officials also paused the distribution of

etesevimab alone to pair with existing

supply of bamlanivimab. The HHS also

said Regeneron's antibody therapy,

REGEN-COV, and GlaxoSmithKline

and partner Vir Biotechnology's

sotrovimab are likely to be effective

against the variants.

Rockwell Automation to buy

Plex Systems for $2.22 billion

Rockwell Automation said it would buy

business software maker Plex Systems

for $2.22 billion in cash, as the U.S.

industrial automation equipment maker

looks to boost its revenue from cloud

offerings. An increasing number of

organizations have been automating

their operations during the COVID-19

pandemic and managing their

manufacturing, supply chain and

finances remotely. Plex's platform

helps customers to connect, automate,

track and analyze their operations and

supply chains, Rockwell said. "The

acquisition will also accelerate our

software revenue growth and

strengthen our annual recurring

revenue streams," Rockwell Chief

Executive Officer Blake Moret said in a

statement.

Mister Car Wash rises 26% in NYSE

debut, valued at $5.6 billion

Mister Car Wash was valued at $5.6

billion in its New York Stock Exchange

debut after shares of the Tucson,

Arizona-based company opened 26%

above their offer price. The company's

stock opened at $18.9 per share, up

from its initial public offering (IPO) price

of $15 per share. The company sold

37.5 million common shares along with

some existing investors. The IPO was

priced at the low end of a previously

announced range for a total of $562.5

million. Mister Car Wash, which

operates 344 car washes across 21

states, reported net revenue of $595

million for the 12 months ended March

31, its IPO prospectus showed. The

company’s shares ended 40.60%

higher at $21.09.

6

Only half time in public debt match:

Mike Dolan

Nothing is decided at half time. That

appears to be as true for post-

pandemic world economic policy and

financial markets as for the European

football championships now underway.

Approaching mid-year in 2021,

investors are still not convinced how

the game will end up. The stakes are

sky high. Having spent trillions of

dollars supporting locked-down

economies through the COVID-19

shock, government debts have

mounted to new records. But these

have been kept affordable by central

banks flooring borrowing costs, itself a

situation many see as only truly

durable if re-emergent inflation

subsides again over time. Rich

countries' commitment to continue

investment spending on infrastructure

and a "green transition" after the

pandemic seems mainly to avoid a

repeat of premature fiscal austerity,

slow growth and flatlining wages after

the banking crash 12 years ago.

Oil prices soar even as consumption

remains below trend: Kemp

Global oil consumption is set to return

to pre-pandemic levels by the first

quarter of 2022, driven by a strong

expansion in global manufacturing and

freight transport as well as the gradual

re-opening of major economies.

Booming consumption from miners,

manufacturers, shipping and trucking

firms, as well as private motorists, is

expected to offset the continued loss of

jet fuel consumption from quarantine

restrictions on passenger aviation.

Global liquids consumption (including

biofuels) is forecast to reach 100.6

million barrels per day (bpd) in March

2022, according to the U.S. Energy

Information Administration (EIA). For

the first time since the onset of the

epidemic, consumption will surpass the

level for the corresponding month in

2019 ("Short-term energy outlook",

EIA, June 8).

A man takes pictures next to statues of former Chinese Communist leaders Ren Bishi, Zhou Enlai, Mao Zedong, Zhu De and Liu Shaoqi at the

Museum of the Communist Party of China that was opened ahead of the 100th founding anniversary of the Party in Beijing, China, June 25.

Column

REUTERS/Thomas Peter

7

CANADA COMING UP - ON MONDAY Market Monitor

Top News

Canada court rejects Huawei CFO

push for publication ban on new

evidence in U.S. extradition case

Huawei Chief Financial Officer Meng

Wanzhou's (pictured) request for a

publication ban on new evidence her

legal team received from HSBC has

been denied by a Canadian court in her

U.S. extradition case, a lawyer involved

in the case said. Meng, 49, was

arrested in December 2018 for

allegedly misleading HSBC about

Huawei Technologies Co's business

dealings in Iran, causing the bank to

break U.S. sanctions. She faces a

Canadian government extradition

attempt on charges of bank fraud in the

United States. Canadian prosecutors

had fought her request for a publication

ban on documents relevant to her case

received from HSBC via a court in

Hong Kong. The documents were

provided on the condition that Meng

make a reasonable effort to keep them

private. The British Columbia Supreme

Court on Thursday dismissed the

request, said Daniel Coles, the legal

counsel representing a consortium of

media outlets - including Reuters - who

argued against the publication ban.

The reasons for the denial were not

made public, pending issues relating to

a previous publication ban, Coles said.

Prosecutors representing the Canadian

government had argued that "to be

consistent with the open court principle,

a ban must be tailored" and details

should be selectively redacted from the

public, rather than the whole

documents.

Canada says COVID-19 Delta variant

could cause greater than expected

surge

Canada projects COVID-19 infections

will decline rapidly over the next two

months, but the more contagious Delta

variant risks causing a greater-than-

expected resurgence of cases later this

year, public health officials said.

Canadian provinces are opening up

businesses again as vaccinations

advance rapidly. More than 76% of

eligible Canadians have had at least a

first dose, and more than 26% have

had a second, Prime Minister Justin

Trudeau said. "Because people got

vaccinated, because people stayed at

home and followed public health rules,

the current situation is rather

encouraging," Trudeau told reporters,

commenting on the projections. But

Theresa Tam, the country's chief

health officer, said there needed to be

a controlled and gradual reopening

because a resurgence is possible if

reopening businesses increases

contact rates by 50% or more. The

Delta variant is driving up cases again

in Britain, Tam noted, urging further

vaccine uptake by Canadians, which

she said could help counteract the

effect of the variant.

TSE's S&P/TSX composite Price C$ chng % chng

GAINERS

ARC Resources Ltd 10.52 0.52 5.20

Canada Goose Holdings Inc 53.74 1.70 3.27

Badger Infrastructure Solutions Ltd

37.68 1.17 3.20

Capstone Mining Corp 5.31 0.14 2.61

Brookfield Business Partners LP 57.93 1.40 2.48

LOSERS

Sunopta Inc 14.87 -0.95 -6.01

Westport Fuel Systems Inc 6.66 -0.35 -4.99

BlackBerry Ltd 14.93 -0.72 -4.60

OrganiGram Holdings Inc 3.63 -0.17 -4.35

Village Farms International Inc 13.34 -0.46 -3.33

The Toronto Stock Exchange's S&P/

TSX composite index ended up

0.07% at 20,230.26.

BlackBerry fell 4.60%, despite the

Canadian security software supplier

beating Wall Street estimates for

quarterly revenue on Thursday.

The energy sector rose 0.24% to

141.87.

The materials sector fell 0.38% to

316.94.

The U.S. dollar was 0.20% lower

against its Canadian counterpart at

C$1.2297.

No major events are scheduled for the

day.

REUTERS/Mark Blinch

REUTERS/Jennifer Gauthier

8

WEALTH NEWS ECONOMIC DATA

U.S. consumer spending takes breather

amid shortages; inflation rises

U.S. consumer spending paused in May as

shortages hurt motor vehicle purchases, but

the supply constraints and increased

demand for services helped to lift prices, with

the Federal Reserve's main inflation

measure rising by the most in 29 years. The

unchanged reading in consumer spending,

which accounts for more than two-thirds of

U.S. economic activity, followed an upwardly

revised 0.9% jump in April, the Commerce

Department said. The personal consumption

expenditures (PCE) price index, excluding

the volatile food and energy components,

increased 0.5% after advancing 0.7% in

April. In the 12 months through May, the so-

called core PCE price index shot up 3.4%,

the largest gain since April 1992. The

University of Michigan consumer survey's

one-year inflation expectation dropped to

BIPARTISAN INFRASTRUCTURE BILL

Biden stands by 'two-track' bill process, despite Republican dismay

U.S. President Joe Biden spoke with Democratic Senator Krysten Sinema on the bipartisan infrastructure agreement, the

White House said, and reiterated his support for a "two-track" legislation process that includes a second reconciliation bill.

RENEWABLE FUEL STANDARD REQUIREMENTS

U.S. Supreme Court backs refineries in biofuel waiver dispute

The U.S. Supreme Court made it easier small oil refineries to win exemptions from a federal law requiring increasing levels of

ethanol and other renewable fuels to be blended into their products, a major setback for biofuel producers.

WALL STREET WEEK AHEAD

As rally in U.S. stocks rolls on, signs of caution grow

The S&P 500 shook off concerns about a more hawkish Federal Reserve to post a record high this week, but activity in some

areas of the market indicates concern over potential volatility ahead of key economic data and corporate profit reports.

U.S. SHARE SALE

Chinese firm Didi's $4 billion IPO books covered on first day of bookbuild -sources

Chinese ride-sharing giant Didi Global Inc's $4 billion initial public offering (IPO) received enough investor demand to clinch its

targeted price range, vindicating a lowering of valuation expectations, people familiar with the matter said.

PANDEMIC BILL

U.S. senators try again with $3 bln pandemic bill -sources

The leaders of the U.S. Senate Foreign Relations Committee are preparing a $3 billion bipartisan bill to prepare for the next

global health crisis, congressional aides said, trying again to pass a pandemic plan after similar efforts stalled last year.

KASHKARI ON INFLATION

Fed's Kashkari says inflation will be temporary, workers will return

Minneapolis Federal Reserve President Neel Kashkari said he expects recent high inflation readings will not last and

Americans will return to the labor market in large numbers in the fall.

4.2% in June from a decade-high 4.6% in May. Personal income fell 2.0% after

declining 13.1% in April. Wages gained 0.8% after rising 1.0% in April.

9

ON THE RADAR

Events ET Poll Prior

Tue: Monthly home price mm for Apr 0900 -- 1.4%

Monthly home price yy for Apr 0900 -- 13.9%

Monthly Home Price Index for Apr 0900 -- 324.9

Caseshiller 20 mm SA for Apr 0900 1.7% 1.6%

Caseshiller 20 mm NSA for Apr 0900 -- 2.2%

Caseshiller 20 yy for Apr 0900 14.5% 13.3%

Consumer Confidence for Jun 1000 119.0 117.2

Texas Service Sector Outlook for Jun 1030 -- 40.0

Dallas Fed Services Revenues for Jun 1030 -- 23.9

Wed: ADP national employment for Jun 0815 6,00,000 9,78,000

Chicago PMI for Jun 0945 70.0 75.2

Pending Homes Index for May 1000 -- 106.2

Pending sales change mm for May 1000 -1.0% -4.4%

Thu: Challenger layoffs for Jun 0730 -- 24,586

Markit Manufacturing PMI Final for Jun 0945 -- 62.6

Construction spending mm for May 1000 0.4% 0.2%

ISM Manufacturing PMI for Jun 1000 61.0 61.2

ISM Manufacturing Prices Paid for Jun 1000 86.5 88.0

ISM Manufacturing Employment Index for Jun 1000 -- 50.9

ISM Manufacturing New Orders Index for Jun 1000 -- 67.0

Fri: Non-farm payrolls for Jun 0830 6,75,000 5,59,000

Private payrolls for Jun 0830 5,80,000 4,92,000

Manufacturing payrolls for Jun 0830 30,000 23,000

Government payrolls for Jun 0830 -- 67,000

Unemployment rate for Jun 0830 5.7% 5.8%

Average earnings mm for Jun 0830 0.3% 0.5%

Average earnings yy for Jun 0830 3.6% 2.0%

Average workweek hours for Jun 0830 34.9 hrs 34.9 hrs

Labor force participation for Jun 0830 -- 61.6%

U6 underemployment for Jun 0830 -- 10.2%

International trade for May 0830 -$71.3 bln -$68.9 bln

Goods trade balance (R) for May 0830 -- -$88.11 bln

Durables ex-defense, R mm for May 1000 -- 1.7%

Durable goods, R mm for May 1000 -- 2.3%

Factory orders mm for May 1000 1.5% -0.6%

Durables ex-transport R mm for May 1000 -- 0.3%

Nondefense cap ex-air R mm for May 1000 -- -0.1%

Factory ex-transport mm for May 1000 -- 0.5%

The Day Ahead - North America is compiled by Yoganand KN and Samrhitha Arunasalam in Bengaluru.

For questions or comments about this report, email us at: TheDay.Ahead@thomsonreuters.com.

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The minaret of Greatest Mosque is seen as the super moon, known as the "Strawberry Super Moon" rises over Zahraa El Maadi, a suburb of Cairo,

Egypt, June 24. REUTERS/Amr Abdallah Dalsh