Tuesday brought CB Consumer Confidence figures were published. Consumer confidence rose in July to the second highest level in 16 years as Americans shrugged off all the drama in President Trump’s Washington and took heart in the best labor market in a decade. The Conference Board said its consumer confidence index rose to 121.1 this month from 117.3 in June. The increase exceeded the 116.9 forecast of economists polled by MarketWatch.
Wednesday brought New Home Sales data was published, however the focus of the session on FOMC interest rate decision. Sales of new single-family houses in June 2017 were at a seasonally adjusted annual rate of 610,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.8 percent above the revised May rate of 605,000 and is 9.1 percent above the June 2016 estimate of 559,000.
According to the Statement from latest FOMC Meeting, Fed noted that consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, and labor market conditions will strengthen somewhat further. Inflation on a 12-month basis is expected to remain somewhat below 2 percent in the near term but to stabilize around the Committee's 2 percent objective over the medium term.
Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely. In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1 to 1-1/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.
Thursday's session was marked by Unemployment Claims and Durable Goods Orders data. The number of Americans who applied for unemployment benefits rose in late July but remained near the lowest level in decades, mirroring a red-hot labor market that shows little sign of cooling. Initial jobless claims in the period running from July 16 to July 22 increased by 10,000 to a seasonally adjusted 244,000, the Labor Department said Thursday. The average of new claims over the past month, which gives a more stable picture of layoff trends, was unchanged at 244,000.
Separate report on Durable Goods Orders showed that new orders for manufactured durable goods in June increased $14.9 billion or 6.5 percent to $245.6 billion, the U.S. Census Bureau announced. This increase, up following two consecutive monthly decreases, followed a 0.1 percent May decrease. Excluding transportation, new orders increased 0.2 percent. Excluding defense, new orders increased 6.7 percent. Transportation equipment, also up following two consecutive monthly decreases, led the increase, $14.6 billion or 19.0 percent to $91.6 billion.
On Friday GDP data was published. Real gross domestic product increased at an annual rate of 2.6 percent in the second quarter of 2017, according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.2 percent. The Bureau emphasized that the second-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency. The "second" estimate for the second quarter, based on more complete data, will be released on August 30, 2017.
This week markets will be looking at:
Chicago PMI (Monday 15:45)
Pending Home Sales (Monday 16:00)
ISM Manufacturing PMI (Tuesday 16:00)
ADP Non-Farm Employment Change (Wednesday 14:15)
Unemployment Claims (Thursday 14:30)
ISM Non-Manufacturing PMI (Thursday 16:00)
Non-Farm Employment Change/Unemployment Rate (Friday 14:30)
