(menafn – ecpulse) (MENAFN - ecPulse)
A new week waits for us dear readers and what a week it is, characterized by data intensity and importance. By the end of the week investors will have obtained GDP reading, Housing and manufacturing sectors reading and accordingly will have a much clearer view and understanding of the current economic situation of the U.S.
Also on the week is the first of many holidays of the season and it is Thanks Giving on the fourth Thursday of November, and accordingly data are stocked and piled in Tuesday and Wednesday, while Thursday markets will not open and Friday markets will close early.
The start of the week is with the U.S Gross Domestic Product reading 2010's third quarter. The Federal Reserve among other analysts predict better performance than the second quarter as many programs and policies where implemented to aid the tumbling recovery process.
The quarterly GDP growth rate is expected to be 2.5% compared to the prior 2.05 increase, while personal consumption is expected to ease from 2.6% to 2.5%, noting that Income and Pending are still in very weak levels and weighing down the U.S economy.
Personal Consumption Expenditure report is due Tuesday, and markets expectations are low indicating that the PCE will most probably the subdued inflation levels earlier reported by the PPI and CPI reports last week.
The reason behind the whole global economic mess and the most damaged sector of all; the Housing Sector will have the lions share on indices and figures regarding the sector's performance during October the coming week. Between existing home sales expectations and new home sales expectations, the housing outlook is unclear where both gauges fluctuated and shook heavily and current expectations contradict between decline for Existing and incline for New.
Home Price Index regarding September is also on next week's calendar to unveil furthermore details regarding the performance of the Housing sector. Prices are expected to slightly drop by 0.1% indicating low demand levels.
Still on expensive spending, the U.S economy will release the Durable Goods orders figures during October, where amid the low income levels and awful labor conditions Durable Goods orders are expected to remain unchanged while those excluding transportation are expected to reverse the prior plummet with a 0.7% incline.
The economic situation will unveil next week, and policy makers will know their failures and their successes, and the Federal Reserve believes that the economy has grown moderately yet a better moderately than the one of second quarter. In addition the data will effect future intervention plans either monetary or fiscal, as the U.S government next to the Fed feel they have exhausted almost all options, and the economy must by the end of 2010 have established basic grounds or poles to build a better future.
As for Canada the neighbor up North, it will release few data throughout the week compiled in only one day; Tuesday. Most importantly it will release inflation gauges represented in Consumer Price Index and Core Consumer Price Index regarding October.
On the same day the economy will release its Retail Sales figures regarding September where both gross and Auto excluded gauges managed to climb steeply since June 2010.
Current market suspicions and outlook will be clear after by the release of the Final reading of November's University of Michigan Confidence index on Wednesday, and ironically the index is expected to remain unchanged at 69.3. the confidence gauge is important and can explain market trends in the short to medium term.
Since Thursday happens to be Thanks Giving, the Weekly Jobs Report will be released on Wednesday, investors hope that last weeks improvement will not be erased or setoff by further calimers.
Last but definably not least, the Federal Reserve will release the minutes of their last FOMC meeting, it will contain data and progress recorded during the period starting from the day the last meeting was held and ending this Tuesday. Investors hope that the minutes will reveal more details regarding the 600 Billion extension of the Asset Purchasing Program, in addition to the confirmation that the economy is still on the right track.