Thursday brought Unemployment Claims figures. In the week ending July 18, the advance figure for seasonally adjusted initial claims was 255,000, a decrease of 26,000 from the previous week's unrevised level of 281,000. Analysts were expecting smaller decrease to 279,000. This is the lowest level for initial claims since November 24, 1973 when it was 233,000. The 4-week moving average was 278,500, a decrease of 4,000 from the previous week's unrevised average of 282,500. There were no special factors impacting this week's initial claims.
Friday was marked by Manufacturing PMI and New Home Sales figures. Sales of new single-family homes in the U.S. fell 6.8% in June to an annual rate of 482,000, the slowest pace in seven months, with drops in three of four regions, the government reported Friday. Economists were expecting a sales rate of 543,000 in June. June's sales pace was up 18.1% from a year earlier, showing improvement, though rates still remain below long-term averages.
Separate report on US Manufacturing PMI showed that it edged up to 53.8, from a 20-month low of 53.6 in June. This was in line with market forecasts. A rebound in overall growth momentum largely reflected stronger rises in output and new business levels in July. Meanwhile, softer job creation was the main factor weighing on the headline PMI during the latest survey period.
This week markets will be looking at:
Durable Goods Orders (Monday 14:30)
CB Consumer Confidence (Tuesday 16:00)
Pending Home Sales (Wednesday 16:00)
Federal Funds Rate/FOMC Statement (Wednesday 20:00)
Advance GDP (Thursday 14:30)
Unemployment Claims (Thursday 14:30)
Chicago PMI (Friday 15:45)
