Monday, 8-9-10
Last Week:
- After a big Monday, the markets appeared to have slowed down the rest of the week. Friday, the markets were down early and stayed that way before rebounding during the final two hours of trading.
- The big news of the week was the July Unemployment rate. A slight increase was expected, but the rate remained unchanged at 9.5%. Non-farm payrolls did increase in the private sector by +71,000 jobs, but the expectation had been for something closer to +90,000. June’s numbers were adjusted down to a -221,000. The numbers appeared to confirm the concern that the economy is slowing down.
- BP announced the leak in their Gulf well has been plugged with cement. They have resumed their drilling of a relief well.
- White House economic advisor Christina Romer resigned and will return to her role as a professor in the classroom in early September.
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This Week:
- The Federal Reserve will meet on Tuesday to discuss possible action against future deflation.
- The House is expected to vote on Tuesday to provide an additional $26 billion in stimulus money to the states. The measure has already been approved by the Senate.
- Q2 productivity numbers are released on Tuesday. Expectations are for the number to drop from Q1’s +2.8 to +0.2.
- The U.S. Treasury reports its July deficit on Wednesday. Expectations are for a one month deficit of -$169 Billion. The Treasury passed -$1 Trillion in June for the fiscal year, which ends September 30th.
- The June International Trade deficit will be reported on Wednesday. Expectations are for it to remain fairly unchanged.
- On Friday, the July CPI will be released. A slight increase is expected. July retails sales also comes out on Friday. A slight increase is expected.
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All the best,
Chris
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