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US Economy and Credit Markets Week Ended July 6, 2012 Posted Under: Weekly Market Commentary   Treasuries closed the holiday shortened week higher as US manufacturing and jobs data were weaker than anticipated. Prices rose on Monday as the ISM Manufacturing index fell below the key growth threshold of 50 to 49.7. The market was anticipating continued growth at a 52.0 level. Yields reversed course during the market’s half day on Tuesday as May factory orders climbed 0.7% which was higher than the projected 0.1%. Total and domestic vehicle sales were also higher than expected. After Wednesday’s closure for Independence Day, treasuries were slightly higher on Thursday as initial and continuing jobless claims were both reported slightly worse than anticipated. Investors also took notice of interest rate cuts made by China and the European Central Bank. Prices finished higher on Friday as nonfarm and private payrolls both missed expectations by nearly 20K at 80K and 84K respectively. The market had been anticipating a 100k change in nonfarm payrolls and a 106k change in private payrolls. The unemployment rate also remained unchanged as projected at 8.2%. Major economic reports (and related consensus forecasts) for next week include: Wednesday: May Trade Balance (-$48.5B), May Wholesale Inventories (0.30%) and minutes of FOMC meeting released; Thursday: June Import Price Index (-1.8% MoM, -1.4% YoY), June Monthly Budget Statement (-$75.0B) and Initial Jobless Claims (370,000); Friday June Producer Price Index (-0.5% MoM, +0.3% YoY), June Producer Price Index Excluding Food & Energy (+0.2% MoM, +2.6% YoY) and July U. of Michigan Consumer Confidence (73.5). Posted on Monday, July 09, 2012 @ 8:50 AM • Post Link Share:   Printer Friendly

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

 

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