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Weekly Economic Overview (August 12 - August 16, 2013)

By: Market IQ
Posted: 8/12/2013 2:24:00 PM
Referenced Stocks: HD;TGT;WMT

Major US stock indices saw repeated weakness and ended lower last week amidst profit taking and uncertainty over Federal Reserve bond buyback tapering.

The US dollar also ended the week lower while Gold and Silver showed modest gains.

For the week, DOW fell 1.5%, S&P 500 shed 1.1%, and NASDAQ slipped 0.8%.

Wall Street's focus will fall on the consumer this week. Investors will look to data on consumer spending and earnings from major consumer bellwethers like Wall-Mart (NYSE:WMT) , Target (NYSE:TGT), and Home Depot (NYSE:HD).

Following are Sentiment charts for S&P 500 (NYSE:SPY), DOW Jones, and NASDAQ (NASDAQ:QQQ).

Following is an economic overview for the week August 12 - August 16, 2013.

(All times EST)

Monday, August 12

14:00 — Federal Budget Balance:

This report will present growth in government debt for July 2013. In June 2013, the deficit fell by $116.5 billion. A further reduction in deficit may positively impact the US dollar.


19:50 — Japan Monetary Policy Meeting Minutes:

The minutes may offer insights behind future plans of Bank of Japan which may affect the Japanese yen and consequently commodities prices. In the previous release, Bank of Japan left it its monetary policy unchanged.

Tuesday, August 13

04:30 — Great Britain CPI:

In June 2013, CPI increased to an annual rate of 2.9%. If inflation continues to increase, it may influence Bank of England's decision towards its monetary policy.

08:30 — US Retail Sales:

Monthly report will present developments in retail sales and gasoline station sales for July. In June, retail sales and gasoline station sales increased by 0.6% (m/m) and 0.7% (m/m) respectively.

Wednesday, August 14

04:30 — Great Britain Claimant Count Change:

This report will present changes in unemployment for July 2013. In June 2013, the number of unemployed had declined by 21.2K while the rate of unemployment remained flat at 7.8%.

05:00 — EU Q2 GDP 2013 (preliminary estimate):

The EU economy contracted by 0.2% in Q1 2013. If economic growth continues to remain sluggish in Q2 2013, the Euro may get adversely impacted.


08:30 — US Producer Price Index (m/m):

This report will present developments in PPI during July 2013. In June, the index increased by 0.8% (m/m) while the core PPI increased by 0.2% (m/m).

Thursday, August 15

04:30 — Great Britain Retail Sales:


This report will present changes in retails sales for July 2013. In June 2013, retails sales increased by 0.2% (m/m). A further increase may positively impact the British Pound.


08:30 — US Consumer Price Index (m/m):

Monthly report will refer to main developments in CPI for July 2013. In June, CPI rose by 0.5% (m/m) and core CPI edged up by 0.2%.


08:30 — US Unemployment Claims:

Weekly report will refer to changes in initial jobless claims for the week ending on August 9. In the previous report jobless claims increased by 5K to reach 333K. This upcoming weekly report may affect the US dollar and consequently commodities and equities markets.

08:30 — Philly Fed Manufacturing Index:

Monthly survey estimates the growth in the US manufacturing sectors. In July, the index increased to 19.8 from 12.5 in June. If the index continues to increase, it may positively affect the US dollar and commodities prices.

Friday, August 16

09:55 — Canada Manufacturing Sales:

This report will refer to manufacturing sales as of June 2013. In May 2013, manufacturing sales increased by 0.7%.

09:55 — US Housing Starts:

US Census Bureau will release housing starts monthly update for July 2013. In June, the adjusted annual rate reached 836K units, down 9.9% below May's rate.

09:55 — US Building Permits:

In May building permits declined by 7.5% (m/m) as the adjusted annual rate of building permits reached 911K. If building permits continue to dwindle, it may indicate that US housing recovery is slowing down.

09:55 — University of Michigan Consumer Sentiment (preliminary estimate):

University of Michigan will publish its preliminary consumer sentiment report for July 2013. This survey may offer insights regarding latest developments in US consumers sentiment.

This commentary is for informational purposes only and does not constitute investment advice. The opinions offered herein are not recommendations to buy, sell or hold securities. Market IQ expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.