Welcome, Traders!
Here are all of the biggest economic indicators for the week starting August 21st.
Tuesday 22nd
10:00 AM ET
US Existing Home Sales
US Existing Home Sales, published by the National Realtors Association, show how many previously owned homes have been sold in the US.
This data helps us understand the health of the housing market and the overall economy. When more homes are being sold, it's usually a positive sign, indicating a strong market and economy. Conversely, fewer home sales can suggest challenges in the housing sector or the economy as a whole.
Therefore, you will likely see stocks go up and the dollar go down if the release comes in hot. If it comes in cooler than expected, you will see the stocks go down and the Dollar go up.
Wednesday 23rd
9:45 AM ET
US S&P Manufacturing PMI Prelim
The US S&P Manufacturing PMI Prelim, is an economic indicator that provides insight into the health and performance of the manufacturing sector in the United States.
This preliminary index is released before the final data and is based on a survey of purchasing managers from various manufacturing companies.
The index is calculated through a survey that assesses factors such as production levels, new orders, employment, supplier deliveries, and inventories.
This release is a diffusion index, meaning a reading of 50 or above indicates expansion in the manufacturing sector, while a reading below 50 suggests contraction.
Unlike the final, this is a preliminary read and therefore may not represent an accurate read for the month.
We are coming to the period where good news is good news, as the markets look away from data as a means to determine Fed rate increases and start seeing it as an indicator of whether the US will experience a recession.
Therefore, if PMI comes in higher than expected, it could be bullish for stocks, whereas if it comes in lower than expected, it could be bearish.
10:00 AM ET
New Home Sales
US New Home Sales is a monthly economic indicator produced by the US Census Bureau and HUD, tracking the number of newly constructed homes sold within a specific period. This data offers insights into the demand for newly built residential properties across different regions of the United States.
The indicator holds significance as it reflects the health of the housing market and the broader economy, influencing investor sentiment and policy decisions.
Hotter than expected data would most likely be bullish for stocks, and cooler data would be the inverse.
10:30 AM ET
EIA Crude Oil Inventories
The EIA's Weekly Release on Crude Oil Inventories is a publication provided by the US Energy Information Administration, offering up-to-date information on the existing quantities of stored crude oil within the United States.
This report holds significance as it facilitates the monitoring of patterns in supply and demand, exerting an impact on oil prices and guiding decisions related to energy.
A reduction in oil reserves would lead to an uptick in WTI prices, while a build would result in the opposite effect. This is attributed to elevated demand coupled with reduced stockpiles, which contributes to price escalations.
Thursday 24th
8:30 AM ET
US Durable Goods
US Durable Goods Orders, a monthly economic indicator reported by the US Census Bureau, gauges the volume of new orders placed with manufacturers for durable goods, items designed to last over three years. Ranging from machinery to vehicles, these goods reflect consumer and business confidence, acting as a crucial barometer for economic activity and trends.
The indicator, provided in both total and core forms (excluding transportation), influences financial markets by indicating shifts in manufacturing and broader economic conditions.
US Initial Jobless Claims
The weekly report from the Department of Labor presents shifts in filings for unemployment insurance, offering insights into the strength of the US labor market. This report comprises data on both Initial Claims and Continuing Claims, which depict freshly lodged and ongoing appeals for unemployment insurance.
Friday 25th
10:00 AM ET
The University of Michigan Sentiment Final
The University of Michigan Consumer Sentiment Index, commonly known as UMich Sentiment, is a key economic indicator that gauges the confidence and outlook of US consumers regarding their personal financial situations and the broader economy.
Produced through a monthly survey, the index assigns numerical values to consumer sentiment, reflecting both current economic conditions and future expectations. It influences consumer spending patterns and serves as a leading indicator of economic health, impacting financial markets as positive sentiment fosters economic activity and investor optimism, while negative sentiment may trigger caution.
