Market Analysis

I am on business travel today and the market update is being published prior to market open. Today’s economic calendar is vacant, but this week will be very heavy on economic data which will provide insight into the trajectory of the economy and inflation. Below is a recap:

Tuesday

• May Retail Sales - expected down .7% vs up .5% for April. Excluding autos, May Retail Sales are expected up .2% vs up .6% in April.
• May Producer Price Index – expected up .1% vs up .8% in April. Core PPI is expected up .2% vs up .3% in April.
• April Business Inventories – expected up 1% which would match the March increase.

Wednesday

• May Consumer Price Index – expected up .1% vs up .4% in April. Core CPI is expected up .1% vs up .2% in April.
• June Empire State (NY) Manufacturing Index – expected 10.0 reading vs 11.9 in May.
• May Industrial Production and Capacity Utilization - Production is expected up .2% vs no change in April and Capacity Utilization is expected to increase to 77.0% from 76.9% in April

Thursday

• Initial Jobless Claims for the Week Ended 6/11/11 – expected 421,000 vs 427,000 the prior week
• Continuing Jobless Claims for the Week Ended 6/4/11 – expected up to 3.690 million vs 3.676 million the prior week.
• May Housing Starts – expected annualized pace of 540,000 vs April pace of 523,000.
• May Building Permits – expected annualized pace of 548,000 vs April pace of 551,000.
• June Philadelphia Fed Index – expected 7.0 reading vs 3.9 in May

Friday

• Initial June University of Michigan Consumer Sentiment Index – expected 73.5 vs 74.3 in May
• May Conference Board Leading Indicators – expected up .4% vs down .3% in April