After last week's mixed inflation data spooked the market, the focus shifts to the unfolding week, which is heavily weighted with data on the manufacturing and housing sectors.
Mixed Inflation Signals: The Labor Department's consumer and producer price inflation reports released last week showed further thawing in inflationary pressure. Headline CPI inflation slowed with the pullback in gasoline prices but the annual rate of core inflation quickened slightly. Producer prices also supported the slowing trend. On the other hand, the University of Michigan's one-year consumer price expectations climbed from 3.6% in March to 4.6% in April.
The market promptly reacted with volatility, with the broader S&P 500 Index ending the week with a modest gain.
Look Ahead: More data on the manufacturing sector, one of the worst-hit amid the economic uncertainties, will drop this week, with two regional Federal Reserve readings and nationwide manufacturing activity data.
The New York Federal Reserve is due to release the results of the Empire Manufacturing survey for April on Monday at 8:30 a.m. EDT. Economists expect a continued but slower contraction in the sector. The headline index is expected to improve slightly from -24.6 in March to -18 in April.
Philadelphia Fed's manufacturing index is expected at -20 in April, slightly better than -23.2 in March. This report is due on Thursday at 8:30 a.m. EDT.
S&P Global's flash manufacturing and service sector purchasing managers' indices are scheduled to be released on Friday at 9:45 a.m. EDT. The manufacturing PMI is expected to slip from 49.2 in March to 49 in April and the service sector PMI may have edged down from 52.6 to 51.5.
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Housing Data Deluge: The National Association of Home Builders will release the housing market index for April on Monday at 10 a.m. EDT. The housing market index is expected to stay put at 44.
The Commerce Department is due to release its housing starts report for March on Tuesday at 8:30 a.m. EDT. Economists expect housing starts to fall further from 1.450 million units in February to 1.40 million units in March. Building permits, an indicator of future housing activity, may have fallen from 1.550 million units to 1.450 million units.
The routinely scheduled weekly mortgage application volume data will be released on Wednesday at 7 a.m. EDT. The metric rose 5.3% in the week ended April 7.
The National Association Of Realtors is due to release its existing home sales report for March at 10 a.m. EDT. Sales of existing homes may have edged down from 4.58 million units to 4.50 million units.
Other Data: The Federal Reserve will release the Beige Book, which contains anecdotal evidence of economic conditions in the 12 Federal Reserve districts. The report is due on Wednesday, at 2 p.m. EDT.
The Energy Information Administration is expected to release its weekly petroleum status report on Wednesday, at 10:30 a.m. EDT.
The Labor Department will announce its jobless claims data for the week ended April 15 on Thursday at 8:30 a.m. EDT. The number of individuals claiming unemployment benefits may have increased from 239,000 in the week ended April 8 to 240,000.
The Conference Board is scheduled to release its leading indicators index on Thursday at 10 a.m. EDT. The leading index is expected to have fallen by 0.8% month-over-month in March, steeper than the 0.3% drop in February.
Treasury Auction Schedule:
Three- and six-month auctions: Monday, at 11:30 a.m. EDT
Fifty Two-week billion auction: Tuesday, at 11:30 a.m. EDT
Twenty-year bond auction: Wednesday, at 1 p.m. EDT
Four- and eight-week bill auctions: Thursday, at 11:30 a.m. EDT
Five-year TIPS auction: Thursday, at 1 p.m. EDT
Fed Speakers
Fed Governor Michelle Bowman: Tuesday, at 1 p.m. EDT
New York Fed President John Williams: Wednesday, at 7 p.m. EDT
Fed Governor Christopher Waller: Thursday, at 12 p.m. EDT
Bowman: Thursday, at 3 p.m. EDT.
Fed Governor Lisa Cook: Friday, at 4:35 p.m. EDT
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