Wednesday's Events: U.S. Durable Goods, Fed Speakers, Mortgage Applications
Some weekly U.S. retail and mortgage data kicks off the day followed by the release of durable goods orders and some Fed speakers. The Canadian economic front looks light with some tourism reports from Statistics Canada and a 23-year bond auction from the Bank of Canada. Meanwhile, Europeans will be looking out for German CPI figures.
At 7 a.m. EDT, the U.S. Mortgage Bankers' Association will release mortgage applications for the week ending May 23. In the previous week, applications declined 7.8% week-over-week.
At 7:45 a.m. EDT, ICSC will release U.S. weekly chain store sales for the week ending May 25. In the previous week, sales rose 1.6% year-over-year.
At 8:30 a.m. EDT, the U.S. Census Bureau will release durable goods orders for April, which economists expect to decline 1.5% month-over-month after the previous 0.3% pullback. Durable goods excluding transportation is expected to fall 0.5% after rising a revised 0.9% in March.
Also at 8:30 a.m., Statistics Canada will release its first-quarter international travel accounts and its Q4 and 2007 reports on characteristics of international travellers.
At 8:55 a.m. EDT, Redbook will release U.S. weekly chain store sales for the week ending May 25. In the previous week, sales rose 1.6% year-over-year.
At 9 a.m. EDT, Treasury Undersecretary for Domestic Finance Robert K. Steel will deliver remarks on 'Lessons from Financial Crises and Turbulence' to the Foreign Correspondents' Club of Japan in Tokyo.
Also at 9 a.m. EDT, Dallas Fed President Richard Fisher (voter) will speak on inflation and debt in San Francisco.
At 10 a.m. EDT, the U.S. Bureau of Labor Statistics will release metropolitan area employment and unemployment for April.
At 10:30 a.m. EDT, the Bank of Canada will sell C$2.8 billion in 2008.06.04 bills.
At 11:30 a.m. EDT, the U.S. Treasury will sell $27 billion in four-week bills.
At noon EDT, the Bank of Canada will sell C$600 million in a 2041.12.01 2.00% real return bond.
At 12:50 p.m. EDT, Minneapolis Fed President Gary Stern will speak about the national and global economy at a luncheon organized by the Wisconsin Chamber of Commerce in Eau Claire. An audience Q&A will follow.
At 1 p.m. EDT, the U.S. Treasury will sell $30 billion in two-year notes.
At some point on Wednesday, markets will receive German consumer prices for May. Economists are expecting a 0.4% month-over-month increase in headline CPI following a previous 0.2% decline in April. Annual CPI is expected to rise 2.8% compared to the previous 2.4% increase. HICP for Germany is expected to show a 0.5% month-over-month growth rate after the index declined 0.3% previously. Headline HICP is expected to rise 2.9% compared to the previous month's 2.6% increase.
Markets will also be looking out for second-quarter earnings from TD Bank and Laurentian Bank at some point on Wednesday.
7:00 US MBA Mortgage Applications W/E 23-May Prior: -7.8%
7:45 US ICSC Chain Store Sales W/E May 25 Prior: +1.6%
8:30 US Durable Goods Orders April Exp: -1.5% Prior: -0.3%
8:30 US Durables Ex Transportation April Exp: -0.5% Prior: +1.5%
8:30 CA International Travel Account Q1
8:30 CA Characteristics of International Travelers Q4 & 2007
8:55 US Redbook Retail Sales W/E May 25 Prior: +1.6%
9:00 US TSY's Steel to speak on Subprime Lending in Washington, D.C.
10:00 US Metro Area Employment and Unemployment
10:30 CA BOC to Sell $2.8B in Treasury Bills
11:30 US Treasury to Sell $27B in 4-Week Bills
12:00 CA BOC to Sell C$0.6B in Real Return Bonds
12:50 US Fed's Stern (voter) Speaks on U.S. Economy in Eau Claire, Wisconsin
13:00 US Treasury to Sell $30B 2-Year Notes
21:00 US Fed's Fisher (voter) Speaks on Inflation and Debt in San Francisco
28- May CA TD Bank Q2 Earnings
28- May CA Laurentian Q2 Earnings
By Erik Kevin Franco and edited by Nancy Girgis