Weekly Market Update: July 25, 2016
What We Learned Last Week
Housing indicators were more positive than negative. Industrial activity is firming. Jobless claims remain very low.
What We Expect to See in the Week Ahead
The Federal Open Market Committee (FOMC) isn’t expected to take any action at this week’s policy meeting, but a potential move at its September meeting is on the table.
The first estimate of 2Q real Gross Domestic Product (GDP) will likely show some rebound from the anemic 1Q estimate. Final estimates will likely show that GDP growth averaged 2 to 2.5 percent annualized in the first half of the year.
The 2Q Employment Cost Index is expected to confirm a modest acceleration in wage rates, consistent with the monthly average hourly earnings trends seen in the monthly employment reports.
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