Stocks on Wall Street closed higher on Friday as investors looked ahead to a busy week of economic data and corporate earnings following the Memorial Day holiday.
The Dow Jones Industrial Average climbed 0.6 per cent to hit another record high, ending the week up 2.1 per cent. The S&P 500 rose 0.4 per cent on Friday and gained 0.9 per cent for the week, while the Nasdaq added 0.2 per cent to finish 0.45 per cent higher over the same period.
The gains came despite late afternoon selling pressure and rising short-term Treasury yields as traders increased expectations that the Federal Reserve could maintain higher interest rates for longer.
Investors are now focusing on three key developments expected on Tuesday.
Consumer confidence report
The Conference Board is expected to release its consumer confidence index for May, a closely watched indicator of household spending and economic outlook.
The index rose to 92.8 in April, beating analysts’ expectations of 89.4 despite rising fuel prices linked to the Iran-related oil market shock.
However, sentiment remains fragile after the University of Michigan on Friday revised its May consumer sentiment reading to the lowest level on record, raising concerns over inflation and future spending patterns.
Market analysts say the data could influence expectations surrounding the Federal Reserve’s next policy moves.
Zscaler earnings
Cybersecurity firm Zscaler will release its quarterly earnings after markets close on Tuesday.
The company is expected to post adjusted earnings per share of $1.01 on revenue of approximately $836 million.
Investor sentiment toward the cloud security provider remains positive, with analysts issuing 40 upward earnings revisions over the past 90 days and no downward revisions.
The company recently announced plans to acquire Symmetry Systems, a privately held cybersecurity firm, as it seeks to strengthen its artificial intelligence capabilities.
AutoZone results
Auto parts retailer AutoZone is scheduled to report earnings before the opening bell.
Analysts forecast adjusted earnings per share of $36.22 on revenue of about $4.86 billion.
Although the company has recorded 11 upward earnings revisions in recent months, it has also seen nine downward revisions, reflecting mixed expectations among investors.
AutoZone shares have declined about 4 per cent over the past month as investors monitor consumer spending trends and demand for vehicle maintenance products.
