US Economy and Credit Markets Ended Oct. 9, 2020

U.S. government bond yields rose last week, with longer-term yields rising more than shorter-term yields, on hopes for fresh stimulus to boost the U.S. economy. Yields rose sharply on Monday but reversed on Tuesday after President Trump said he was postponing stimulus talks until after the election. On Friday, however, White House economic adviser Larry Kudlow said the president approved a revised $1.8 trillion stimulus proposal that would include aid for airlines and small businesses as well as funds for direct checks. In economic data, initial jobless claims for the week ended October 3rd were 840,000, which was above expectations. Weekly jobless claims have recovered significantly since spring but have remained between 800 and 900 thousand since August, a level that is still above the pre-pandemic high of 695,000. The September ISM Services Index beat expectations, however, showing growth in the services sector for the fourth consecutive month following two months of contraction in April and May. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Tuesday: September CPI MoM (0.2%, 0.4%); Wednesday: October 9 MBA Mortgage Applications (N/A, 4.6%), September PPI Final Demand MoM (0.2%, 0.3%); Thursday: October 10 Initial Jobless Claims (825k, 840k), October Empire Manufacturing (14.0, 17.0); Friday: October Preliminary U. of Mich. Sentiment (80.5, 80.4), September Retail Sales Advance MoM (0.8%, 0.6%), September Industrial Production MoM (0.6%, 0.4%).
Posted on Monday, October 12, 2020 @ 8:15 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.