U.S. Economic Calendar Event Update – Jan 2

These are the U.S. economic calendar events for Wednesday, January 02, 2013. All times are EST.

MBA Purchase Index for the week ending on 12/29 are scheduled to be released at 7:00 AM. The prior period for MBA Purchase Index had a result of -12.3%. This event has a low effect on US markets.

Construction Spending for Nov are scheduled to be released at 10:00 AM. Analysts are estimating a result of 0.5%. The prior period for Construction Spending had a result of 1.4%. This event has a low effect on US markets.

ISM Index for Dec are scheduled to be released at 10:00 AM. Analysts are estimating a result of 50.5. The prior period for ISM Index had a result of 49.5. This event has a low effect on US markets.

Truck Sales for Dec are scheduled to be released at 2:00 PM. The prior period for Truck Sales had a result of 6.5. This event has a low effect on US markets.

Auto Sales for Dec are scheduled to be released at 2:00 PM. The prior period for Auto Sales had a result of 5.6. This event has a low effect on US markets.

At the release of important events, US equity markets (INDEXSP:.INX) can make major moves. Be sure to keep an eye on S&P (NYSEARCA:SPY), Nasdaq (NYSEARCA:QQQ) and Dow Jones (NYSEARCA:DIA) at the time of announcements.

Here is some more information about the events discussion in this article.

MBA Purchase Index: Gauges demand for mortgage application in the US . Tracking new home mortgages and refinances, MBA Mortgage Applications Survey serves at a current indicator for the US housing market. Growth in mortgages suggests a healthy housing market. Due to the multiplier effect housing has on the rest of the economy, rising activity suggests increased household income and economic expansion. The headline figure is the weekly percentage change in the MBA Mortgage Applications figure. Among the various indices measured in the survey, the purchase index and refinancing index most accurately reflect where the housing market is headed. The purchasing index measures the change in existing home sales in all mortgage applications, while the refinance index measures the mortgage refinancing activity in all mortgage applications.

Construction Spending: The construction spending report is broken down between residential, non-residential, and public expenditures on new construction. The monthly changes are both volatile and subject to huge revisions, so this report rarely has any market impact. Only trends extending over three months or more can be viewed as significant.

The spending figures are in both nominal and real (inflation adjusted) by economists to forecast the investment component of quarterly GDP. The annualized percent changes between the quarterly averages of these two components match up well with residential investment and commercial structure changes in the GDP accounts.

ISM Index: ISM Manufacuring assesses the state of US industry by surveying executives on expectations for future production, new orders, inventories, employment and deliveries. Though manufacturing accounts for a relatively small portion of GDP, fluctuations in manufacturing tend to bear the most responsibility for changes in GDP. Consequently, developments in manufacturing often front run trends in the overall economy, making the ISM Manufacturing figure a leading indicator of economic turnarounds. A pickup in demand for manufactured products after a period of recession, reflected by a higher ISM figure, strongly suggests a reversal upward. Conversely a slowdown in manufacturing orders and production during a boom suggests a slowing of the economy.

Truck Sales: Auto and Truck Sales measure the monthly sales of all domestically produced vehicles. They are considered an important indicator of consumer demand, accounting for roughly 25% of total retail sales. Demand for big ticket items such as autos and trucks tends to be interest rate sensitive, making the motor vehicle sector a leading indicator of business cycles.

Each auto maker reports sales individually. The reports are typically released over the course of the first three business days of the month. Using the individual reports, a total annual sales pace can be calculated after applying Commerce Department seasonal factors. It is this annual sales pace that the market refers to when discussing auto and truck sales for the month.

Auto Sales: Auto and Truck Sales measure the monthly sales of all domestically produced vehicles. They are considered an important indicator of consumer demand, accounting for roughly 25% of total retail sales. Demand for big ticket items such as autos and trucks tends to be interest rate sensitive, making the motor vehicle sector a leading indicator of business cycles.

Each auto maker reports sales individually. The reports are typically released over the course of the first three business days of the month. Using the individual reports, a total annual sales pace can be calculated after applying Commerce Department seasonal factors. It is this annual sales pace that the market refers to when discussing auto and truck sales for the month.

Alex Fredricks

Alex Fredricks

Alex Fredricks has a degree in business and is an avid day-trader. Alex's experience and love for the game of the markets is shown not only in his posts, but the post he helps edit for other authors on our staff.