FOMC Minutes Will Be the Highlight of the Week

Highlight of the week

We have some important economic data this week with housing starts, building permits, and the NAHB Housing Market Index. Tuesday will have important manufacturing data and we’ll get the FOMC (Federal Open Market Committee) minutes on Wednesday. The FOMC minutes are potentially the biggest market-moving event. The big question will revolve around how close the Fed is to hiking the interest rate at the September meeting.

FOMC Minutes Will Be the Highlight of the Week

Earnings season is largely over except for retailers.

Economic data this week

Below is a summary of this week’s economic data.

Monday, August 15:

  • Empire State Manufacturing Survey
  • NAHB Housing Market Index

Tuesday, August 16:

  • consumer price index
  • housing starts
  • building permits
  • industrial production
  • manufacturing production
  • capacity utilization

Wednesday, August 17:

  • Mortgage Bankers Association mortgage applications
  • FOMC minutes

Thursday, August 18:

  • initial jobless claims
  • Bloomberg Consumer Comfort Index
  • Philly Fed
  • index of leading economic indicators

Friday, August 19:

  • no economic data

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 biggest chance of a market-moving event will be the FOMC minutes on Wednesday. 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 the data on housing—housing starts, building permits, and the NAHB Housing Market Index. Investors can get access to the homebuilding sector through the SPDR S&P Homebuilders ETF (XHB).

In the next part of this series, we’ll discuss what happened last week.