Veterans Day has come and past and now everyone is looking towards the holiday shopping season as a leading indicator on the health of the economy.
The first report of the week will be October's Retail Sales due to be released early Monday morning. This is an extremely important report as it tells the story of consumer spending, which makes up two-thirds of the US economy.
On Tuesday, the key reports shift away from the consumer and to the health of producers and manufactures. The first report will be October's Producer Price Index (PPI) and gives a sneek peek into inflationary pressure at the producer level. The second report will be October's Industrial Production as it will provide the strength in the manufacturing sector.
Wednesday will be a significant day of economic reports that will include October's Consumer Price Index (CPI), which measures inflationary pressure on the consumer and really tells the story of consumer buying power. Also to be reported that day will be October's Building Permits, October's Housing Starts and Crude Inventories. Anticipate a lot of media coverage on the housing recovery as focus will be on Housing Starts.
Thursday will be especially important to bond traders as the Treasury Department will announce the dollar volume of 2-year, 5-year and 7-year Notes to be auctioned the following week.
Home loan shoppers and retirement funds will continue their battle for investment dollars from abroad and here in the US. As-is the par for the course, good economic news will favor the stock market and take money away from mortgage bonds which will result in higher mortgage rates. Conversely, bad economic news will drive investors into the safety of bonds which will help home buyers with lower mortgage rates.
Want to see what other economic reports might impact home buyers in the coming week? Stop by and check out the Financial Market Update Provided to You Exclusively by The Barath Group.
This Is The Week Ahead for November 15th.
Comments(4)