The Week Ahead: More Meaningful Economic Data

By: Matthew Graham

Coming off a week that was uneventful by any standard, the week ahead is notably different in terms of its more robust economic data offerings.  The reports on tap aren't the be all end all market movers that the Employment Situation and FOMC Announcement may be in September, but they begin a gradual acceleration toward a "yes or no" consensus on September tapering.  Last week didn't add anything at all to that debate and although we don't yet know if the current week will, it has a much better chance given what's on the calendar. 

Monday brings only the monthly read on the Federal Budget in the afternoon--not a market mover.  Things pick up on Tuesday with one of the week's most significant reports--Retail Sales--in the morning, along with Import/Export prices.  July Retail Sales is one of the few pieces of non-employment-related economic data that may materially affect the consensus on tapering.  Whether or not it does, the rest of the week's data would have to at least not "oppose" its suggestion.

Wednesday is slightly slower with only the Producer Price Index in the 8:30am time slot.  Thursday is the busiest morning of the week with the Consumer Price Index, Empire State Manufacturing, and Jobless Claims all in the 8:30am slot.  Industrial Production is out at 9:15am followed by Philly Fed and the NAHB Housing Market Index at 10am.  Friday is slightly less busy, but contains the currently important Housing Starts numbers as well as Consumer Sentiment and Productivity/Costs. 

Retail Sales is the nearest term focal point of the week.  European data is more of a factor on Wednesday, but more so if it accelerates any trend kicked off by Tuesday's domestic data.  Thursday and Friday's data would need to be more cohesive in its message to prompt big moves, but there are at least two reports on both mornings that have market-moving punch if they beat or miss by enough (Claims and Philly Fed on Thursday.  Housing Starts and Sentiment on Friday).

MBS Live Econ Calendar:

Week Of Mon, Aug 12 2013 - Fri, Aug 16 2013

Time

Event

Period

Unit

Forecast

Prior

Mon, Aug 12

14:00

Federal budget, $

Jul

bl

-96.0

116.5

Tue, Aug 13

08:30

Import prices mm

Jul

%

0.8

-0.2

08:30

Retail sales ex-autos mm

Jul

%

0.4

0.0

08:30

Retail sales mm

Jul

%

0.3

0.4

08:30

Export prices mm

Jul

%

0.2

-0.1

10:00

Business inventories mm

Jun

%

0.3

0.1

Wed, Aug 14

07:00

MBA Mortgage market index

w/e

--

--

495.4

08:30

Producer prices mm

Jul

%

0.3

0.8

08:30

Producer prices, core mm

Jul

%

0.2

0.2

Thu, Aug 15

08:30

Core CPI mm, sa

Jul

%

0.2

0.2

08:30

Initial Jobless Claims

w/e

k

335

333

08:30

NY Fed manufacturing

Aug

--

10.00

9.46

09:15

Industrial output mm

Jul

%

0.3

0.3

09:15

Capacity utilization mm

Jul

%

78.0

77.8

10:00

Philly Fed Business Index

Aug

--

15.0

19.8

10:00

NAHB housing market indx

Aug

--

57

57

Fri, Aug 16

08:30

Housing starts number mm

Jul

ml

0.910

0.836

08:30

Labor costs Revised

Q2

%

1.0

-4.3

08:30

Building permits: number

Jul

ml

0.935

0.918

08:30

Productivity Revised

Q2

%

0.6

0.5

09:55

U.Mich sentiment

Aug

--

85.5

85.1

* mm: monthly | yy: annual | qq: quarterly | "w/e" in "period" column indicates a weekly report

* Q1: First Quarter | Adv: Advance Release | Pre: Preliminary Release | Fin: Final Release

* (n)SA: (non) Seasonally Adjusted

* PMI: "Purchasing Managers Index"