Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Trading Radar: Will Consumers Continue to Save Less to Maintain Same Spending Habits?

By

Economics, earnings reports, and market events for the week ahead.

PrintPRINT
Volatility was high this week as Cyprus status in the eurozone changed by the minute. The S&P 500 (INDEXSP:.INX) was able to almost claw its way back to unchanged at 1560 after touching as low as 1538. At the end of the week, the Cyprus government was attempting to secure an EU bailout by winding down one of its major financial instutitions, Laiki, and levying a deposit on uninsured depositors, those above 100,000 euros. Russia, whose citizens and companies make up a majority of the deposits, remained on the sidelines in terms of aid as it viewed the country's banking system as too distressed with a debt level that's too high.

Looking ahead to next week, we see a few interesting economic reports that are worth mentioning. One is Friday's February personal income and spending report. In January, disposable income fell by 1.38% in response to taxes, but consumers kept up similar spending habits by saving at a reduced rate. If this trend continues, which it certainly could, it would indicate moderate growth in personal spending. In 2012, savings rates averaged 3.6% before falling to 2.3% last month.

February's durable goods orders should show a large increase over January, mostly due to January's absence of large airplane orders that Boeing (NYSE:BA) received in December. Ex transports, durable goods are expected to rise 0.7%.

On the global front, there isn't much to note in terms of economic data releases. Notably, there is a lot of data coming from Japan, including retail sales, employment, industrial production, and consumer inflation. As the JPY has been a driver of risk assets lately, they will be important releases to watch. From Europe, German unemployment figures on Thursday and eurozone consumer confidence on Wednesday are the key releases.

Notable earnings reports for the week include Dollar General (NYSE:DG), Apollo Group (NASDAQ:APOL), and Mosaic (NYSE:MOS).

Monday, March 25

US Economics (Time Zone: EDT)

08:30 Chicago Fed – prior -0.32
10:30 Dallas Fed – consensus 3.5, prior 2.2
11:00 Fed buying $1.25b-$1.75b notes in 23 to 30-year range
11:30 Treasury selling $35b 3-month bills, $30b 6-month bills

12:15 NY Fed Dudley speaking on economics in New York
1:15 Bernanke, BoE's King, IMF's Blanchard speak in London

Global Economics (Time Zone: GMT)

09:30 GBP BBA Home Loans
21:45 NZD Trade Balance

Earnings

Before:
Apollo Group (APOL)
Dollar General (DG)


Tuesday, March 26
US Economics (Time Zone: EDT)

08:30 Durable Goods Orders – consensus 3.9%, prior -5.2%
08:30 Durable Goods ex Transports – consensus 0.7%, prior 1.9%
08:30 Cap Goods Nondef Ex Air – consensus -1.0%, prior 6.3%
08:30 Cap Goods Shipments Nondef Ex Air – consensus -1.0%
09:00 S&P/CaseShiller 20 City – consensus 0.75%, prior 0.88%
09:00 S&P/CaseShiller Composite – consensus 7.90%, prior 6.84%
10:00 Richmond Fed – consensus 6, prior 6
10;00 Consumer Confidence – consensus 67.3, prior 69.6
10:00 New Home Sales – consensus 424K, prior 437K
11:00 Fed to buy $2.75b-$3.5b notes in 7 to 10-year range
11:30 Treasury selling 4-week bills
1:00 Treasury selling $35b in 2-year notes
1:10am Fisher speaking on US economy in Abu Dhabi

Global Economics (Time Zone: GMT)

08:00 CHF KOF Institute March Economic Forecast
10:30 UK selling GBP1b 12-year bonds

Earnings

No major earnings


Wednesday, March 27

US Economics (Time Zone: EDT)

07:00 MBA Mortgage Index
10:00 Pending Home Sales MoM – consensus 0.3%, prior 4.5%
10:00 Pending Home Sales YoY – consensus 9.2%, prior 10.4%
11:00 Fed buying $1.25b-$1.75b notes in 23 to 30-year range
1:00 Treasury selling $35b 5-year notes
11:30 Rosengren speaks on economy in New Hampshire
12:15 Pianalto speaks on monetary policy in Cleveland
1:00 Kocherlakota speaks on monetary policy in Minnesota

Global Economics (Time Zone: GMT)

07:00 CHF UBS Consumption Indicator
07:45 EUR French GDP
09:30 GBP GDP (4Q final estimate)
10:00 EUR Eurozone CPI
10:00 EUR Eurozone Consumer Confidence
12:30 CAD CPI
23:50 JPY Retail Sales

Earnings

After:
PVH Corp (PVH)
Red Hat (RHT)


Thursday, March 28

US Economics (Time Zone: EDT)

08:30 Initial Claims – consensus 340K, prior 336K
08:30 Continuing Claims – consensus 3042K, prior 3053K
08:30 GDP QoQ (Annualized) 4Q2012 final estimate – consensus 0.5%, prior 0.1%
08:30 Personal Consumption – consensus 2.1%, prior 2.1%
08:30 GDP Price Index – consensus 0.9%, prior 0.9%
08:30 Core PCE QoQ – consensus 0.9%, prior 0.9%
09:45 Chicago PMI – consensus 56.8, prior 56.8
11:00 Kansas City Fed – consensus -2, prior -10
11:00 Fed purchasing $4.25b-$5.25b notes in 4.5 to 5.5-year range
1:00 Treasury selling $29b in 7-year notes

Global Economics (Time Zone: GMT)

CNY Leading Index
01:30 CNY Industrial Profits
08:55 EUR German Unemployment Change
12:30 CAD GDP
23:30 JPY Jobless Rate
23:30 JPY CPI
23:50 JPY Industrial Production

Earnings

Before:
Mosaic (MOS)

Gamestop (GME)


Friday, March 29

US Economics (Time Zone: EDT)

08:30 Personal Income – consensus 0.8%, prior -3.6%
08:30 Personal Spending – consensus 0.6%, prior 0.2%
08:30 PCE Deflator YoY – consensus 1.4%, prior 1.2%
08:30 PCE Core YoY – consensus 1.3%, prior 1.3%
09:55 University of Michigan Confidence (2nd estimate March) – consensus 73.0, prior 71.8

9:30 Fisher speaking on banking in Maryland

Global Economics (Time Zone: GMT)

01:35 CNY MINI Business Sentiment Indicator
05:00 JPY Housing Starts

Earnings

No major earnings

Twitter: @MichaelSedacca

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE