Over the next several days investors will digest a wide variety of U.S. economic data about the world’s largest economy at a time when corporate earnings season is underway and the U.S. Fed Reserve has already charted its course for completing its massive quantitative easing (QE) stimulus program later in October.
Even despite last Friday’s pullback in the market, U.S. stock indices remain close to all time highs.
Year to date (YTD) the Dow has rallied 2.32 percent, the S&P 500 is up 7.03 percent, and the Nasdaq has jumped 6.54 percent.
On Wednesday the Federal Reserve will wrap up their July FOMC meeting and likely announce that they will keep short term rates at .25 percent until an undetermined period of time in 2015 that depends on how well the U.S. economy holds up during the months ahead.
Also on Wednesday the U.S. Department of Commerce will give their initial GDP reading for the 2nd quarter in 2014 that is expected to show 3.6 percent GDP growth, according to economists from briefing.com.
First quarter 2014 GDP in the U.S. saw a contraction of -2.9 percent that was largely blamed on the cold weather during the first 3 months of the year.
On Friday the July non-farm payroll employment report will be closely watched, especially since the U.S. unemployment rate in June dropped to 6.1 percent sooner than the Federal Reserve forecasted while job growth has been stable, averaging well over 200,000 in recent months.
According to briefing.com, the forecast is for 250,000 non-farm payroll jobs added to the economy in July while the unemployment rate is expected to hold steady at 6.1 percent.
The week ahead will see a flurry of new IPO”s with 22 new IPO’s scheduled.
Monday at 10:00 EST will see pending home sales for June.
On Tuesday the Case-Schiller Index for May will be announced at 9:00 a.m. EST followed by consumer confidence for July at 10:00 a.m.
On Wednesday GDP will be released for the 2nd quarter in 2014 followed by the ADP employment report for July and the Federal Reserve’s rate decision.
On Thursday initial claims and Chicago PMI will be reported.
Friday is the non-farm payroll report followed by the ISM index for July, Michigan sentiment in July, construction spending in June, and auto/truck sales for July.