Pivotal Day for Financial Markets: GDP, Jobless Claims, and Pending Home Sales to Drive Market Sentiment
Key Economic Data Releases on August 29, 2024
As financial markets brace for another critical day, investors are keenly eyeing a series of major economic data releases scheduled for Thursday, August 29, 2024. These high-impact reports will provide valuable insights into the state of the U.S. economy and have the potential to significantly influence market dynamics and Federal Reserve policy outlooks.
Major Economic Events to Watch:
1. GDP (Q2) - 8:30 AM ET
- Expected: 2.8%
- Previous: 1.4%
- The Gross Domestic Product (GDP) is the broadest measure of economic activity and a primary indicator of the economy's health.
2. Initial Jobless Claims - 8:30 AM ET
- Forecast: 232K
- Previous: 232K
- This report measures new unemployment insurance claims, providing key insights into the labor market's health.
3. Pending Home Sales (MoM) - 10:00 AM ET
- Expected: 0.2%
- Previous: 4.8%
- Indicates the change in homes under contract to be sold, excluding new construction, offering a glimpse into the housing market's momentum.
Other Important Economic Events to Watch:
4. Core PCE Prices (Q2) - 8:30 AM ET
- Forecast: 2.90%
- Previous: 3.70%
- A key inflation indicator closely monitored by the Federal Reserve.
5. GDP Price Index (Q2) - 8:30 AM ET
- Expected: 2.3%
- Previous: 3.1%
- Measures the change in the price of all goods and services included in GDP.
6. Retail Inventories Ex Auto (Jul) - 8:30 AM ET
- Previous: 0.2%
- Indicates changes in retail inventory levels, excluding automobiles.
7. Goods Trade Balance (Jul) - 8:30 AM ET
- Forecast: -$97.70B
- Previous: -$96.56B
- Measures the difference in value between imported and exported goods.
8. Continuing Jobless Claims - 8:30 AM ET
- Expected: 1,870K
- Previous: 1,863K
- Shows the number of unemployed individuals who qualify for unemployment insurance benefits.
9. 7-Year Note Auction - 1:00 PM ET
- Previous: 4.162%
- Indicates the yield on 7-year Treasury notes being auctioned.
10. FOMC Member Bostic Speaks - 3:30 PM ET
- Federal Reserve Bank of Atlanta President's comments may offer insights into future monetary policy.
11. Fed's Balance Sheet - 4:30 PM ET
- Previous: $7,194B
- Provides details on the Federal Reserve's assets and liabilities.
12. Reserve Balances with Federal Reserve Banks - 4:30 PM ET
- Previous: $3.359T
- Shows the amount of money depository institutions maintain at regional Federal Reserve Banks.
Additional Economic Indicators:
13. Real Consumer Spending (Q2) - 8:30 AM ET
- Expected: 2.3%
- Previous: 1.5%
- Measures inflation-adjusted household spending.
14. GDP Sales (Q2) - 8:30 AM ET
- Forecast: 2.0%
- Previous: 1.8%
15. PCE Prices (Q2) - 8:30 AM ET
- Expected: 2.6%
- Previous: 3.4%
- Measures changes in the prices of goods and services purchased by consumers.
16. Corporate Profits (Q2) - 8:30 AM ET
- Previous: -2.7%
- Indicates the net current-production income of corporations.
17. Jobless Claims 4-Week Avg. - 8:30 AM ET
- Previous: 236.00K
- Provides a smoother trend of initial jobless claims.
18. Wholesale Inventories (Jul) - 8:30 AM ET
- Forecast: 0.3%
- Previous: 0.2%
- Measures the change in the total value of goods held by wholesalers.
19. Pending Home Sales Index - 10:00 AM ET
- Previous: 74.3
- Provides additional context to the Pending Home Sales data.
20. Natural Gas Storage - 10:30 AM ET
- Expected: 33B
- Previous: 35B
- Measures the change in natural gas held in underground storage.
21. 4-Week Bill Auction - 11:30 AM ET
- Previous: 5.240%
- Indicates the rate on 4-week Treasury Bills being auctioned.
22. 8-Week Bill Auction - 11:30 AM ET
- Previous: 5.125%
- Shows the rate on 8-week Treasury Bills being auctioned.
For the latest updates and detailed insights, please refer to our Economic Calendar.
---
Breaking Down the Analysis:
What This Means for You:
- GDP Report: A stronger-than-expected GDP growth (forecast at 2.8%) could signal a robust economy, potentially leading to higher stock prices but also increasing the likelihood of interest rate hikes by the Federal Reserve to control inflation.
- Initial Jobless Claims: Stable jobless claims (forecast at 232K) suggest a steady labor market, which is a positive sign for consumer spending and economic stability.
- Pending Home Sales: A slight increase in pending home sales (expected 0.2%) indicates a cooling housing market, which can affect home prices and mortgage rates.
- Inflation Indicators (Core PCE Prices, GDP Price Index): Lower-than-previous inflation rates could relieve some pressure on the Federal Reserve to raise interest rates, potentially easing borrowing costs for consumers and businesses.
- Trade Balance and Retail Inventories: These figures can impact the strength of the dollar and stock market sentiment. A larger trade deficit might weaken the dollar, while changes in retail inventories can signal shifts in consumer demand.
Understanding these data points helps you make informed decisions about your investments, savings, and spending. Stay tuned to market updates to navigate the financial landscape effectively.