It's the final week of the second quarter and markets look to close out the past three months with solid gains.
The Dow Jones Industrial Average is on track to end more than 3% higher for the quarter, adding to the 4.5% growth seen in the first quarter. Likewise, the S&P 500 is on track to end with gains of roughly 3%, slowing from the 5.5% increase seen in the first three months of the year.
Markets have entered a quieter period in recent weeks as the earnings season came to a close and the Trump agenda appeared to stall. Volatility has tumbled nearly 20% since the beginning of April.
"There's some uncertainty as to where we go from here," Matt Schreiber, president of WBI Investments, said in a call. "The mood is still optimistic but we have some uncertainty around 'will we get the pro-growth policies that help this market to move higher and the economy to strengthen?'"
Progress on healthcare in the coming week could shake markets out of their malaise. Roadblocks in the Obamacare repeal-and-replace process have raised doubts over when tax reform could come to pass. House Speaker Paul Ryan insisted on Tuesday, June 20, that tax reform would come by year's end.
The Congressional Budget Office will release its rating on the Senate Republicans' healthcare bill in the coming week. The Senate GOP's plan is seen as similar to the House GOP's American Health Care Act, though many have criticized the bill for being even harsher.
The CBO found that the House's bill would leave 23 million more Americans uninsured in exchange for a $119 billion reduction in the deficit over 10 years and nearly $800 billion in tax cuts that would overwhelmingly benefit the rich. The Tax Policy Center estimated a $37,000 average annual tax cut would go to the highest 1% of earners, and the top 0.1% would get a $200,000 tax cut.
Senate House Majority Leader Mitch McConnell is pushing for a vote on the Senate's bill in the coming week. McConnell hopes to have votes cast before Congress goes on its July 4 recess.
On the economic calendar in the coming week: Durable goods orders for May will be released on Monday, June 26; S&P Corelogic Case-Shiller HPI for April and consumer confidence for June on Tuesday; international trade in goods and pending home sales index for May on Wednesday; the final print on first-quarter GDP growth on Thursday; and personal income and outlays for May and Chicago PMI and consumer sentiment for June on Friday.
In Fedspeak, San Francisco Fed President John C. Williams will speak on sustainable growth in the U.S. and globally at events in Sydney, Australia, on Monday and Tuesday, June 26 and 27; Philadelphia Fed President Patrick Harker will share his economic outlook in London and Minneapolis Fed President Neel Kashkari will participate in a townhall in Michigan on Tuesday; and St. Louis Fed President James Bullard will speak on the U.S. economy and monetary policy in London on Thursday.
In earnings in the coming week: Darden Restaurants Inc. (DRI) , FactSet Research Systems Inc. (FDS) and KB Home (KBH) will report on Tuesday, June 27; General Mills Inc. (GIS) , Monsanto Co. (MON) , Pier 1 Imports Inc. (PIR) and UniFirst Corp. (UNF) on Wednesday; and Acuity Brands Inc. (AYI) , ConAgra Brands Inc. (CAG) , Constellation Brands Inc. (STZ) , McCormick & Co. Inc. (MKC) , Micron Technology Inc. (MU) , Nike Inc. (NKE) Rite Aid Corp. (RAD) , and Walgreens Boots Alliance Inc. (WBA) on Thursday.