Wall Street balks as Fed's tightrope gets thinner

In addition to the Fed meeting, this week brings data from S&P/Case Shiller on April home prices, May orders for durable goods, May sales of new and existing homes, and--in perhaps the most revealing report for the market--personal income and spending in May.

The Commerce Department's personal spending reading is expected to show a 0.6 percent increase, according to the median estimate of economists surveyed by Thomson Financial. Income is anticipated to have increased by 0.4 percent, while inflation at the personal spending level--as measured by the Core Personal Consumption Expenditures Deflator--is predicted to have ticked up by 0.2 percent.

Another important piece of data is the Commerce Department's final reading on first-quarter gross domestic product. The estimate was revised up last month to 0.9 percent, and economists, on average, expect the government to ratchet it up again to 1.0 percent.

The earnings calendar, meanwhile, is light this week, with most companies readying to report in July. But results from food companies--Kroger Co., General Mills Inc., Monsanto Co. and ConAgra Foods--will likely be in focus as Wall Street assesses how agricultural commodities costs are affecting businesses and consumers.

Other key earnings releases this week include Nike Inc., Oracle Corp., Research In Motion Ltd., Discover Financial Services LLC, Lennar Corp., Palm Inc. and Rite Aid Corp.