U.S. STOCK PREVIEW

Today’s April personal income and spending reports are expected to be weak at +0.1% and unchanged m/m, respectively, after the +0.2% gain seen for both series in March. Today’s April PCE deflator is expected to ease to +0.8% y/y from +1.0% y/y in March. Meanwhile, the April PCE core deflator, which is the Fed’s preferred inflation measure, is expected to dip to +1.0% y/y from +1.1% y/y in March. Today’s May Chicago PMI is expected to show an increase of +1.0 point to 50.0, recovering a bit after the sharp 2-month decline totaling -7.8 points in March-April to the 3-1/2 month low of 49.0 in April. Today’s final-May U.S. consumer confidence index from the University of Michigan is expected to show a +0.3 point increase to 84.0 from the early-May level of 83.7. There are no earnings reports today from any of the Russell 1000 companies. Conferences today include Citi Global Consumer Conference on Wed-Fri, Sanford C Bernstein Strategic Decisions Conference on Wed-Fri.