Tuesday's Events: U.S. Producer Prices, Fed's Kohn, Cdn Wholesales

By: Jann Swanson

U.S. producer prices, IBD/TIPP Economic Optimism and comments from Fed Vice-Chairman Donald Kohn will highlight the U.S. economic data front, while Canadian markets receive international securities transactions and wholesale sales.

At 7:45 a.m. EDT, ICSC will release chain store sales for the week ending May 17. In the previous week, sales were up 0.5% year-over-year.

At 8:30 a.m. EDT, the Bureau of Labor Statistics will release the producer prices index for April. The headline PPI index is expected to rise 0.4% month-over-month in April after picking up 1.1% previously, with annual PPI up 6.7% compared to March's 6.9% gain. Core producer prices are expected to rise 0.2% month-over-month, matching March's gain, while annual core PPI is expected to pick up 2.9% after a previous 2.7% gain.

Also at 8:30 a.m. EDT, the Chicago Fed will release its national activity index for April. In March, the index stood at -0.78.

Turning to Canada, at 8:30 a.m. EDT, Statistics Canada will release international securities transactions for March, which are expected to total C$2.2 billion compared to the previous month's C$3.8 billion.

Also at 8:30 a.m. EDT, Statistics Canada will release the Canadian wholesale sales for March, which are expected to rise 0.3% month-over-month after falling 1.8% in February.

Statistics Canada is also scheduled to release its report on travel between Canada and other countries for March.

At 8:55 a.m. EDT, Redbook will release chain store sales for the week ending May 17. In the previous week, sales were up 2.0% year-over-year.

At 9 a.m. EDT, Fed Vice-Chairman Donald Kohn (voter) will speak on the U.S. economic outlook at the National Conference on Public Employee Retirement System's Annual Conference in New Orleans. No Q&A is expected.

At 10 a.m. EDT, Former Fed Chairman Alan Greenspan will speak at a conference in Athens.

Also at 10 a.m. EDT, the Fed will publish results from a $75 billion at 28-day TAF auction conducted on May 19.

Investor's Business Daily and Technometrica Market Intelligence will also release their consumer confidence index for May at 10 a.m. EDT. Economists are expecting a decline to a reading of 37.8 compared to the previous month's reading of 39.2.

At 11 a.m. EDT, U.S. Deputy Treasury Secretary Robert Kimmitt will deliver a briefing on the Palestine Investment Conference in Washington, D.C.

At 12:45 p.m. EDT, U.S. Assistant Secretary for Tax Policy Eric Solomon will deliver remarks on current developments in tax policy at the Tax Executives Institute in Cambridge Maryland.

At 1 p.m. EDT, the U.S. Treasury will sell $32 billion in four week bills.

At 5 p.m. EDT, markets will receive the ABC consumer comfort index for the week ending May 18. In the previous week, the index stood at -47.

7:45 US ICSC Chain Store Sales (Y/Y) Week Ending May 17 Prior: +0.5%

8:30 CA International Securities Transactions March Exp: C$2.20B Prior: C$3.80B

8:30 CA Wholesale Sales (M/M) March Exp: +0.3% Prior: -1.8%

8:30 US Producer Price Index (M/M) April Exp: +0.4% Prior: +1.1%

8:30 US PPI Ex Food & Energy (M/M) April Exp: +0.2% Prior: +0.2%

8:30 US Producer Price Index (Y/Y) April Exp: +6.7% Prior: +6.9%

8:30 US PPI Ex Food & Energy (Y/Y) April Exp: +2.9% Prior: +2.7%

8:55 US Redbook Chain Store Sales (Y/Y) Week Ending May 17 Prior: +2.0%

8:00 Fed's Kohn to Speak on the economy in New Orleans

10:00 US Fed Publishes Results of TAF Auction

10:00 US Tsy's Kimmitt Speaks on the Palestine Investment Conference

10:00 US IBD/TIPP Economic Optimism May Exp: 37.8 Prior: 39.2

10:00 US Former Fed's Greenspan Speaks in Athens

12:45 US Tsy's Solomon Speaks on Tax Policy

13:00 US Treasury to Sell $32 Billion in 4-Week Bills

17:00 US ABC Consumer Confidence 18-May Prior: -47

By Erik Kevin Franco and edited by Cristina Markham