U.S. Economic Calendar Event Update – Jul 10

These are the U.S. economic calendar events for Wednesday, July 10, 2013. All times are EST.

MBA Purchase Index for the week ending on 07/06 are scheduled to be released at 7:00 AM. This event has a low effect on US markets.

Wholesale Inventories for May are scheduled to be released at 10:00 AM. The prior period for Wholesale Inventories had a result of 0.2%. This event has a low effect on US markets.

Crude Inventories for the week ending on 07/06 are scheduled to be released at 10:30 AM. This event has a low effect on US markets.

FOMC Minutes for the week ending on 6/19 are scheduled to be released at 2:00 PM. This event has a major 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.

Wholesale Inventories: The wholesale trade report includes sales and inventory statistics from the second stage of the manufacturing process. The sales figures say close to nothing about personal consumption and therefore do not move the market. Wholesale inventories sometimes swing enough to change the aggregate inventory profile (aggregate inventory is the sum of inventory at the manufacturing, wholesale, and retail levels), which may affect the GDP outlook. In that event they can elicit a small market reaction. More often than not, however, this release goes unnoticed except by market economists.

Crude Inventories: Measure of inventories of crude oil stored for future use. The figure relies on the Energy Information Administration’s Monthly Crude Oil Report which surveys companies that store 500 or more barrels of crude oil. Because companies with smaller stores are excluded, the figure systematically underestimates actual crude oil stores. Nonetheless, the report is significant as changes in crude oil inventories provide insight into oil demand and prices. A significant decrease in inventories suggests the supply of oil is possibly strained, which puts upward pressure on oil prices. Any increase in oil prices will act as an inflationary pressure as increased oil prices are fed through the economy. But because any affects of Oil Stocks would take some time to feed through the economy, the report typically does not affect the market. The figure is reported monthly, either in thousands of barrels per month or as a percentage change from the previous month.

FOMC Minutes: The Federal Open Market Committee (FOMC) began publishing the minutes for its monetary policy meetings in 2005. The detailed minutes from these meetings give some of the best insight into the monetary policy decision making process and what the FED thinks about economic developments inside and outside of the US . Markets tend to focus most of their attention on the key points discussed during the meeting that suggest future interest rate changes. For example if the minutes state that high energy costs and a rapidly expanding housing market are fueling inflation, then markets participants will tend to monitor these key sectors closely in order to gauge the likelihood of a rate increases in the future. Because minutes come out three weeks after the FOMC meets, markets will discount some information in the report. Market participants tend to read into the overall mood the Federal Reserve gives during the meeting. If the FOMC is cautious about the inflationary outlook for the economy (characterized as “Hawkish”), then the market has a higher likelihood of future rate increases. If the Bank is optimistic (“Dovish”) it suggests to markets that inflation is in check and that future rate increases are less likely.

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.