Events that marked the week:
On Tuesday Building Permits and Housing Starts figures were published. New-home construction in the U.S. rose more than forecast in June, providing some momentum for residential real estate near the end of its busy selling season. Residential starts increased 4.8 percent to a 1.19 million annualized rate, the most since February, from 1.14 in May that was lower than previously estimated, Commerce Department data showed Tuesday in Washington. Permits, a proxy for future construction, also climbed. Permits climbed 1.5 percent to a 1.15 million annualized rate, matching the median forecast of economists surveyed by Bloomberg.
Thursday brought Unemployment Claims and Philly Fed Manufacturing Index figures. The number of applications for U.S. unemployment benefits unexpectedly fell last week, reaching a three-month low, indicating the labor market remains steady. Initial jobless claims dropped by 1,000 to 253,000 in the week ended July 16, from an unrevised 254,000 in the prior period, a report from the Labor Department showed Thursday in Washington. The median forecast of 44 economists surveyed by Bloomberg called for 265,000. Continuing claims decreased.
Separate report on Philly Fed Manufacturing Index showed that the index of current activity, fell from 4.7 in June to -2.9 this month. For nine of the past 11 months, this diffusion index has been negative. Twenty-two percent of the firms reported an increase in activity, 3 points lower than last month, and the percent of firms that reported decreases rose from 20 to 25. Fifty-one percent of the firms reported steady activity this month, similar to the share that reported steady activity last month.
This week markets will be looking at:
CB Consumer Confidence (Tuesday 16:00)
New Home Sales (Tuesday 16:00)
Durable Goods Orders (Wednesday 14:30)
Federal Funds Rate/FOMC Statement (Wednesday 20:00)
Unemployment Claims (Thursday 14:30)
Advance GDP (Friday 14:30)
Chicago PMI (Friday 15:45)
Revised UoM Consumer Sentiment (Friday 16:00)