Economic Indicators: Manufacturing and Jobless Claims

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Steve Grasso, Director of Institutional Sales at Stuart Frankel & Co., and frequent commentator on CNBC, believes the Fed’s Beige Book, International Trade, Consumer Credit, and Wholesale Trade will be closely watched as traders and investors come out of the vacation season. The biggest impact on the market will come from ISM Non-Mfg Index and Initial Jobless Claims. as the market has been discounting the bad manufacturing data that has come out over the past several weeks, and traders are looking for jobless claims to drop substantially below the 400k mark.

Grasso says the residual effects of money flowing from fixed income into equity is also important. According to Grasso, sell side analysts, including those at Goldman Sachs, have indicated that $135 billion of funds has moved into pension funds from the fixed income market. The influx of funds is expected to increase volume, as it has forced investors in short positions to scramble for cover, particularly in the housing and industrial sectors. Overall however, Grasso says an overwhelming number of investors remain bearish.

Various other economic indicators are also due out next week covering manufacturing, real estate, the cost of living, consumer sentiment and the broader market. The announcement schedule for the week of September 6th includes the following:

  • Monday:  U.S. Holiday Labor Day, All Markets are Closed
  • Tuesday:  ISM Non-Mfg Index
  • Wednesday:  Fed’s Beige Book 
  • Thursday:  Initial Jobless Claims, International Trade, and Consumer Credit
  • Friday:  Wholesale Trade

Click this link for the full economic calendar for the week.

 

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