US Economy and Credit Markets Ended June 12, 2020
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Longer-term Treasury yields fell last week following the Fed's June meeting and on concerns that an upward trend in new coronavirus cases in certain states will prolong restrictions on economic activity. The Fed held rates steady at its policy meeting last week, as expected, and signaled no rate increases through 2022. At his virtual press conference following the meeting, Fed Chairman Jerome Powell said, "We're not thinking about raising rates. We're not even thinking about thinking about raising rates." Initial jobless claims for the week ending June 6 came in slightly better than expected at about 1.5 million, which marked the 10th straight week of declines compared to the prior week. 1.5 million claims are also well below the March-peak of 6.9 million. Continued claims, or the number of Americans receiving unemployment benefits, were 20.9 million for the week ending May 30, which were still near historic highs but slightly lower than the previous week. Consumer sentiment improved in the two weeks ending June 10 as the University of Michigan's Consumer Sentiment Index increased more than expected. The boost in sentiment was mostly due to recent job gains. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Monday: June Empire Manufacturing (-30.0, -48.5); Tuesday: May Retail Sales Advance MoM (7.9%, -16.4%), May Industrial Production MoM (3.0%, -11.2%); Wednesday: June 12 MBA Mortgage Applications (N/A, 9.3%), May Housing Starts (1,100k, 891k); Thursday: June 13 Initial Jobless Claims (1,290k, 1,542k), May Leading Index (2.4%, -4.4%).
Posted on Monday, June 15, 2020 @ 8:18 AM

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.