Economic News and the Week Ahead |
Economic News
The Thomson Reuters/University of Michigan consumer sentiment index for May rose to 72.4 from 69.8 in April. Economists had expected the index to rise to 70.
The consumer price index gained 0.4 percent in April, largely due to rising food and energy costs, compared with a 0.5 percent gain in March. The result was in line with expectations.
The core CPI, which excludes volatile food and energy prices, rose 0.2 percent in April, up from a 0.1 percent gain in March. Gasoline prices rose 3.3 percent in April, which accounted for nearly half the rise in the overall CPI.
European shares fell after hawkish comments by European Central Bank President Jean-Claude Trichet. The Greek debt problem continued to unfold, with Greek Prime Minister George Papandreou saying that the current spreads of Greek bond yields over those of other Euro Zone states were not sustainable in a monetary union. Meanwhile, European Central Bank Governing Council member Ewald Nowotny said Greece has notmet the terms of its international bailout lately.
The Week Ahead
MONDAY: Empire state manufacturing survey, Treasury international capital, housing market index, 13-F filings due; earnings from JCPenney and Lowe’s.
TUESDAY: Housing starts, industrial production, JPMorgan shareholder meeting, Shell Oil annual meeting; earnings from Home Depot, Wal-Mart, TJX and Dell.
WEDNESDAY: Weekly mortgage applications, oil inventories, FOMC minutes, Fed’s Bullard speaks; earnings from Abercrombie & Fitch, BJ’s, Target and HP.
THURSDAY: Weekly jobless claims, existing home sales, Philadelphia Fed survey, leading indicators, money supply, Halliburton shareholder meeting, Intel shareholder meeting, McDonald’s shareholder meeting, Sallie Mae annual meeting, LinkedIn IPO; earnings from Sears and Gap.
FRIDAY: JCPenney shareholder meeting, Macy’s shareholder meeting, Time Warner shareholder meeting.
About the author: BinaryOptionStrategy- David Frank
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