Retail sales will be the highlight of the week
The week after the jobs report is usually pretty data-light and next week isn’t an exception. The Markets will continue to adjust to the jobs report last Friday. There will be a few important data points to ponder this week including job openings, retail sales, and inventory data. There has been some concern that we’re heading into a recession again. The inventory build is a tell-tale sign.
Economic data this week
Here’s a rundown of this week’s economic data.
Monday, May 9:
- Labor market conditions index
Tuesday, May 10:
- NFIB Small Business Optimism
- wholesale inventories
- wholesale sales
- JOLTs job openings
Wednesday, May 11:
- MBA (Mortgage Bankers Association) mortgage applications
- monthly budget statement
Thursday, May 12:
- initial jobless claims
- Bloomberg Consumer Comfort
- import prices
Friday, May 13:
- retail sales
- Producer Price Index
- business inventories
- consumer sentiment
The earnings this week include:
Tuesday, May 10
- Northstar Realty Finance (NRF)
Implications for mortgage REITs
REITs such as Annaly Capital Management (NLY) and American Capital Agency (AGNC) will likely focus on data that will move the bond market. The jobs report last week was the biggest event for bonds. Now, our attention turns to the June Federal Open Market Committee meeting. Investors who want to bet on interest rates can look at the iShares 20+ Year Treasury Bond ETF (TLT).
Impact on homebuilders
Homebuilders such as PulteGroup (PHM) and CalAtlantic Group (CAA) will pay the most attention to job openings. The seasonal uptick for the homebuilding sector is in full swing. Investors will be waiting to hear about traffic patterns. Investors can get access to the homebuilding sector through the SPDR S&P Homebuilders ETF (XHB).
In the next part of the series, we’ll look at the week in review in detail