US Economy and Credit Markets Ended Aug. 26, 2016

Bob Carey
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US Economy and Credit Markets Ended Aug. 26, 2016

Posted Under: Weekly Market Commentary

Yields rose last week after Federal Reserve Chairwoman Janet Yellen signaled that the central bank will gradually raise short-term interest rates in the coming weeks or months ahead. New home sales surged on Tuesday reaching the highest reading in almost nine years. The spike in sales was primarily led by sales in the south and northeast. Sales of previously owned homes fell in July for the first time in four months on Wednesday, as supply constraints and high prices deterred buyers. Jobless claims fell to the lowest level in five weeks on Thursday, as employers continue to retain employees. New orders for durable goods in July beat consensus expectations after showing the largest single-month decline in two years in June. The rise in overall orders was led by aircraft, computers, and electronic products. Real GDP was revised to a 1.1% annual growth rate in Q2 from a prior estimate of 1.2% on Friday, matching consensus expectations. The largest downward revisions were for net exports, government purchases, and inventories, which offset upward revisions for business R&D and consumer spending. Major economic reports (and related consensus forecasts) for the upcoming week include: Monday: July Personal Income (0.4%), July Personal Income (0.3%); Tuesday: Aug Consumer Confidence Index (97.0); Wednesday: Aug 26th MBA Mortgage Applications, Aug ADP Employment Change (175k), Aug Chicago Purchasing Manager (54.0); Thursday: Aug 27th Initial Jobless Claims (265k), Aug Markit US Manufacturing PMI (52.1), Aug ISM Manufacturing (52.0); Friday: July Trade Balance (-$43.0b), Aug Change in Nonfarm Payrolls (185k), Aug Unemployment Rate (4.8%), July Factory Orders (2.0%).

Posted on Monday, August 29, 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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