Market Analysis

Bonds are weaker today and stocks stronger on a stronger than expected Consumer Spending Report for July which shows Spending increased .8% over the prior month vs expectations for a .5% increase and compared to a decline of .1% for the prior month. Fed Chair Bernanke's move to not announce a new quantitative easing program probably also eased investor anxiety. A major new program announcement would have validated concerns that about the trajectory of the economy. As it stands, Bernanke threw the hot potato back where it belongs, into the lap of the Administration and Congress.

Below is a recap of this week's economic calendar:

Monday, August 29

• July Personal Income, Spending and Personal Consumption Expenditure Index (PCE) - Incomes were up .3% vs expectations for a .2% increase. Spending was up .8% vs an expected .5% increase. The Core (excluding food and energy)PCE, a measure of inflation at the consumer level, was up .2% which match expectations.
• June Pending Home Sales - down 1.3% vs expectations for a 1.4% decline and an increase of 2.4% in May

Tuesday, August 30

• August Consumer Confidence - expected 52.0 vs 59.5 in July

Wednesday, August 31

• August ADP Private Sector Employment Change - expected increase of 100,000 vs 114,000 increase in July
• August Chicago Purchasing Manager's Index (PMI) - expected 53.0 vs 58.8 in July
• July Factory Orders - expected 1.8% increase vs a .8% decline in JUne

Thursday, September 01

• Initial Jobless Claims Week Ended 8/27 - expected 407,000 vs 417,000 the prior week
• Continuing Jobless Claims week ended 8/20 - expected 3.630 million vs 3.641 million the prior week
• 2nd Qtr Revised Productivity and Unit Labor Cost - Productivity expected down .5% and Unit Labor Costs expected up 2.4%.
• August Institute of Supply Management Manufacturing Index - expected 48.5 vs 50.9 in July

Friday, September 02

• August Non Farm Payroll and Unemployment Rate - Non Farm Payrolls expected up 73,000 with the Private Sector adding 110,000 jobs and the Public Sector shedding 37,000 jobs. The nation's Unemployment Rate is expected to remain at 9.1%.