What to Watch in the Week Ahead and on Monday, June 26

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ON MONDAY Carnival Corp is expected to post a rise in second-quarter revenue as cruise operators see record bookings, benefiting from pent-up demand from consumers willing to shell out money to resume leisure travel. Investors will track gross margin performance amid rising fuel costs and sticky inflation. U.S. District Judge Jed Rakoff is set to hold a hearing over the fairness of the proposed $290 million settlement of a civil lawsuit brought by women who say they were victims of Jeffrey Epstein's sex trafficking against JPMorgan Chase & Co. Mexico's economic activity data for April is scheduled for release. The country's economy shrank 0.3% in March. REST OF THE WEEK The U.S. Federal Reserve is scheduled to publish the results of its annual stress test of large banks on Wednesday, the first of its kind following a string of bank failures in the spring. Federal Reserve Chair Jerome Powell, ECB President Christine Lagarde, BOJ Governor Kazuo Ueda and BoE Governor Andrew Bailey are likely to speak at the ECB Forum on Central Banking on Wednesday. Separately, Powell and Bank of Spain's governor Pablo Hernández de Cos are expected to participate in a dialogue at a conference on financial sustainability on Thursday. Federal Reserve Bank of Atlanta President Raphael Bostic is expected to speak on the U.S. economic outlook before the Irish Association of Investment Managers Annual Dinner, and participates in conversation, in Dublin, Ireland, on Thursday. On the U.S. economic front, the Commerce Department in its final report is expected to show the economy likely grew 1.4% in the first quarter on Thursday. The personal consumption expenditure (PCE) price index data for May is due for release on Friday. Meanwhile, excluding the volatile food and energy components, the PCE price index likely remained unchanged at 0.4% in May. Consumer spending likely rose 0.2% in May, following a 0.8% gain in April. The Conference Board on Tuesday is expected to show its consumer confidence index likely rose to 103.5 in June from 102.3 in the previous month. The Commerce Department on Tuesday is expected to report orders for durable goods likely slipped 1% in May after rising 1.1% in April. The Labor Department, on Thursday, is expected to report initial claims for state unemployment benefits likely rose 1,000 to a seasonally adjusted 265,000 for the week ended June 24. The Commerce Department on Tuesday is expected to report new home sales likely fell to a seasonally adjusted annual rate of 670,000 units in May from 683,000 in the month before. Pending home sales report for May is scheduled for release on Thursday. On Friday, the University of Michigan's final reading on the overall index of consumer sentiment likely remained unchanged at 63.9 in June. Micron Technology Inc is expected to post a 58% drop in third-quarter revenue on Wednesday, as its customers have a high inventory of data storage chips. Investors are looking for additional commentary around how China sale ban of its chips will hurt the business. Nike Inc is expected to post a rise in fourth-quarter revenue on Thursday, benefiting from resilient demand for its sneakers like Air Max and Jordans, as well as a stronger recovery in China. Investors will be on the look out for updates on margin recovery, demand trends, inventory challenges, easing supply chain costs and any forecast the company provides. Constellation Brands Inc is expected to post a rise in first-quarter revenue on Friday, helped by steady consumer demand for its premium wines and beers despite price hikes to tackle higher costs. Investors will be looking for new product launches in its beer segment, impact of an uncertain consumer environment on sales, as well as easing supply chain costs. Walgreens Boots Alliance Inc is expected to report its third-quarter earnings on Tuesday at a time when it pushes to gain back market share that the pharmacy chain lost to rivals due to store closures during the pandemic. Investors will focus on its long-term strategy at a time when the company is expanding its healthcare footprint by operating doctor's clinics and launching a clinical trials business.

General Mills Inc is expected to post higher sales for the fourth quarter on Wednesday, owing to steady demand for its packaged-food products and pricing actions. Investors will look out for comments on margin impact from inflation and annual profit outlook. McCormick & Company Inc is expected to post a rise in second-quarter revenue on Thursday, helped by steady demand for its condiments and spices and inflation-induced price hikes. Investors will watch out for comments on improving gross margins as supply chain snags ease, volume growth across segments and rebound in demand in China. Delta Air Lines Inc is expected to detail its medium and long-term business strategy at its investor day on Tuesday. A court in San Francisco is expected to hold a hearing on Tuesday to discuss a trial date in the case of Mike Lynch, who was extradited to the United States to face criminal charges over the $11 billion sale of software company Autonomy to Hewlett-Packard (HP). The U.S. Food and Drug Administration is expected to make a decision by Friday on the use of BioMarin Pharmaceutical Inc's gene therapy as a treatment for a type of genetic blood disorder, hemophilia A. The health regulator had previously declined to approve the therapy in 2020 citing the need for additional data. On Friday, Statistics Canada is expected to report the country's economy likely expanded 0.2% in April. Canada's statistics agency on Tuesday is expected to report inflation likely grew 0.5% in May, following a rise of 0.7% in the month before. On an annual basis, inflation likely rose 3.4% in May. Brazil's statistics agency IBGE is scheduled to release inflation data for the month to mid-June on Tuesday. Brazil's producer prices data for May is due for release on Thursday. The country's jobless rate data for May is expected on Friday. Chile and Mexico's unemployment rate data for May are due on Thursday and Friday, respectively. Separately, Chile's INE statistics agency is expected to release manufacturing output figures for May on Friday. Argentina's economic activity for April is due on Friday. (Compiled by Nidhi C Sai in Bengaluru; Editing by Shweta Agarwal)