US Economy and Credit Markets Week Ended May 25, 2012

 
Treasury yields were generally unchanged this week and remain near record lows as fear and uncertainty around Europe continue to generate the risk aversion preference of U.S. debt as well as the stronger Eurozone nations and may continue as Greece is positioned for new elections on June 17th. In Spain, one of the nation's largest lenders, Bankia reportedly requested a $24 billion injection. In economic news this week, existing home sales increased 3.4% in April to an annual rate of 4.62 million units vs. the estimate of 4.61 million and April new home sales increased 3.3% to an annual rate of 343,000, beating the estimate of 335,000. April durable goods orders increased 0.2%, matching estimates, however, excluding transportation, orders declined 0.6% as the survey expected a 0.8% gain. May U of M Consumer Confidence was reported at 79.3 vs. the estimate of 77.8. Markets will close Monday in observance of the Memorial Day Holiday. Major economic reports (and related consensus forecasts) for next week include: Tuesday: March S&P Cash-Shiller Composite-20 Home Price Index (0.20% MoM, -2.60% YoY), May Dallas Fed Manufacturing Index (1.5); Wednesday: April Pending Home Sales (0.0% MoM, 19.0% YoY); Thursday: 1st Quarter GDP (1.90%), 1st Quarter Personal Consumption (2.90%), May Chicago Purchasing Manager Index (57.0); Friday: May Change in Nonfarm Payrolls (150,000), May Unemployment Rate (8.10%), April Personal Income (0.30%), April Personal Spending (0.30%), May ISM Manufacturing Index (53.8), May Total and Domestic Vehicle Sales (14.41M/11.20M annualized).
Posted on Tuesday, May 29, 2012 @ 9:25 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.