US Economy and Credit Markets Ended July 29, 2016

Bob Carey
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US Economy and Credit Markets Ended July 29, 2016

Posted Under: Weekly Market Commentary

Treasuries strengthened last week as the US economy continued its Goldilocks style tepid growth. Oil prices exacerbated their slide amid high crude oil and fuel inventories. Tuesday's single-family home sales report for June was exceedingly positive with an increase of 3.5%, which was ahead of expectations. The median price of homes sold in June was also up 6.1% from a year ago. The new orders for durable goods report released Wednesday declined 4% in June. A decline in aircraft orders led the report lower as it was well below consensus expectations for a decline of 1.4%. Finally, on Friday, the first estimate for Q2 real GDP growth registered 1.2% at an annual rate, below the consensus expected 2.5%. In aggregate, personal consumption, business investment, and home building grew at a 2.7% annual rate in Q2 and the GDP price index increased at a 2.2% annual rate in Q2. Household purchases for Q2 were the brightest bit of economic information as they expanded 4.2% in the quarter. Business spending was a drag on GDP as inventories knocked 1.2% off of the Q2 GDP. Major economic reports (and related consensus forecasts) for the upcoming week include: Monday: Final July Markit US Manufacturing (52.9, unch.) and July ISM Manufacturing (53, -.2); Tuesday: June Personal Income (.3%, +.1%) and Personal Spending (.3%, -.1%); Wednesday: July 29 MBA Mortgage Applications, July ADP Employment Change (170K, -2K); Thursday: July 30 Initial Jobless Claims (265K, -1K), June Factory Orders (-1.9%, -1%) and Final June Durable Goods Orders (-4%, unch.); Friday: June Trade Balance (-$43B, -1.9B), July Change in Non-Farm Payrolls (180K, -107K) and July Unemployment Rate (4.8%, -.1%).

Posted on Monday, August 1, 2016 @ 8:44 AM • Post Link	Share:
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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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