Why you shouldn't pay much attention to this week's jobs report

Part 6

Why follow REITs and builders releases this week? Housing starts

Next week contains a lot of data, but nothing market-moving

Next week contains some important economic data, especially the retail sales data, which will matter for people making forecasts for Q4 GDP. Later in the week, we’ll have important housing data with housing starts and building permits. Economists will be very interested in seeing whether last month’s 1.1 million print was a fluke or not.

Housing startsEnlarge Graph

Economic data this week

Monday, January 13

  • Monthly Budget Statement

Tuesday, January 14

  • NFIB Small Business Optimism
  • Retail sales
  • Import prices
  • Business inventories

Wednesday, January 15

  • MBA Mortgage Applications
  • Empire Manufacturing
  • Producer Price Index
  • Beige book

Thursday, January 16

  • Initial jobless claims
  • Bloomberg Consumer Comfort
  • Consumer Price Index
  • TIC flows
  • Philly Fed
  • NAHB Housing Market Index

Friday, January 17

  • Housing starts
  • Building permits
  • Industrial production
  • Capacity utilization
  • Manufacturing production
  • Consumer confidence
  • JOLT Job Openings

Earnings reports this week

No real estate–related earnings this week.

Impact on mortgage REITs

Mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), and MFA Financial (MFA) are highly interest rate–sensitive. There’s nothing next week that should be all that important to the REITs, although analysts who cover the REITs that have origination arms will certainly pay close attention to all the banking reports.

Impact on homebuilders

Next week contains a lot of data that will be of concern to the builders. The housing starts and building permits data promise to be a big deal to builders like Lennar (LEN) and Standard Pacific (SPF). The industrial data (capacity utilization and industrial production) will be important data points as well.

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