After the news at the end of the previous week, this coming week is probably looking quite bullish. Jobless claims last week were much lower than expected, down to 298K claims, bringing the unemployment percentage down to 7.0%. Last week ended up fairly flat, but this coming week’s should see some upside in the equity market. Expect to have a slight decline in the bond pricing through the end of the week.
Look for the equity market to have gains for at least the first three days, then look for next weeks unemployment numbers to be a key market indicator. Along with the uneploment numbers we also have retail sales and Producer Price Index (PPI) numbers. PPI is used as a major indicator for commodity pricing in the manufacturing sector. Retail sales consensus is to increase 0.6%, and 0.2% if you don’t include autos & gas. PPI numbers are looking to a consensus of -0.1%, and 0.1% less food and energy. Treasury budget will also come late on Wednesday, so look to that as a possible market mover.