Investors’ attention this week will be focused on the Federal Reserve Chair’s speech at the Jackson Hole Symposium. Analysts expect that Jerome Powell will reiterate the message delivered in Federal Reserve’s July meeting minutes, which is that there are still “significant upside risks to inflation, which could require further tightening of monetary policy.”
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Some important economic reports are coming out this week, as well as in the weeks ahead, which will help shape the Federal Reserve’s monetary decision at its next policy rate meeting in September. As the Fed reiterated numerous times, it makes its policy decisions according to data. Therefore, it is most worthwhile for the investors to keep an eye on these reports, as they can help shed some light on the central bank’s further moves and their implications for the stock markets.
Here are four economic events that could affect your portfolio this week. For a full listing of all upcoming economic events, check out the TipRanks Economic Calendar.
» August’s S&P Global Manufacturing and Services PMIs (preliminary) – Wednesday, 8/23 – these reports show business conditions in the most important U.S. economic sectors, providing significant indication of overall economic conditions. They are used by policymakers and analysts as forward-looking indicators reflecting trends in the overall economy.
» July’s Durable Goods Orders – Thursday, 8/24 – This report shows the amount of orders for manufactured products that last three years or more; since these are usually priced higher, these orders reflect the level of confidence of businesses and consumers with regards to their immediate economic future. Therefore, this report provides an important leading indicator of manufacturing activity and insight into the overall economy.
» August’s Michigan Consumer Sentiment Index – Friday, 8/25 – This report includes consumers’ confidence in the health of the economy and their outlook for longer-term economic conditions. The higher the level of trust consumers have in the strength of the economy, the higher their spending, which is an important part of overall GDP (Gross Domestic Product) growth.
» August’s University of Michigan (UoM) 5-year Inflation Expectations – Friday, 8/25 – This report is the result of the survey conducted by the UoM. The survey results convey consumers’ views of long-term inflation and are used as a component of the Fed’s calculations of the Index of Inflation Expectations.
