Stock indexes gained more than 2% last week. The Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) shook off mixed quarterly results from retailers, and mounting evidence of an impending interest rate hike from the Federal Reserve, to push near 2016 highs:
As for the shortened trading week ahead, Friday brings a highly anticipated jobs reading that could seal the prospect of an interest rate hike by the Fed in June. Meanwhile, stocks that could make big moves include retailers Michael Kors (NYSE: KORS) and Vera Bradley (NASDAQ: VRA) .
Michael Kors' earnings expectations
Luxury clothing accessory specialist Michael Kors is set to post quarterly results before the market opens on Wednesday, June 1. With sales and profitability on the decline, the stock hasn't managed to avoid the slump that's snagged most clothing retailers - it's down 30% in the last year.
In April's report, job growth slowed for the second straight month to 160,000, and economist expect a similar number for May. But the longer-term average is more important for investors to watch. Job gains have averaged a solid 230,000 per month over the last year even with improving wages. As long as those positive trends don't reverse dramatically in this week's report, odds seem good for the Fed to raise rates after concluding its two-day meeting on June 15.
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