Stock Market News

WASHINGTON (Thomson Financial) - The following is a synopsis of US economic indicators to be released in the coming week with consensus forecasts compiled by Thomson Reuters IFR Markets.

The coming week will be fairly light in economic indicators, but heavy in Fed speak, with scheduled speeches by the Presidents of the Federal Reserve Banks of Chicago, Dallas, Minneapolis, Philadelphia, Boston, St. Louis and San Francisco. TUESDAY, OCTOBER 7 Consumer credit is expected to have increased in August to $5.5 bln, from $4.6 bln.

Also on Tuesday, the Federal Reserve will release minutes from their September 16 meeting, during which interest rates were kept on hold by a unanimous vote. 'The amount of discussion regarding inflation concerns will... be of interest, especially by Fisher, given that in the press release, the reference to 'elevated energy prices' was removed,' said Jennifer Lee of BMO Capital Markets. WEDNESDAY, OCTOBER 8 Pending home sales in August are expected to have dipped to an index of 85.1 from 86.5 in the previous month.

'This will leave sales just slightly below year-ago levels, as dramatically reduced prices and foreclosures beckon to potential homebuyers with the ability to obtain credit,' Lee said. 'Anecdotal reports also suggest that foreigners are taking advantage of these times as their opportunity to dip their toes into the US housing market,' Lee added THURSDAY, OCTOBER 9 The number of individuals filing first-time claims for unemployment in the week ending October 4 are expected to fall to 480,000. Last week, claims rose to a 7 year high of 497,000, but the Labor Department noted that approximately 45,000 claims related to Hurricane Ike and Gustav were added to the week's initial claims total.

Meanwhile, the number of individuals continuing to file claims for unemployment in the week ending September 27 is expected to have risen to 3.60 mln from 3.591 mln in the previous week.

 

Wholesale inventories in August are expected to have increased by 0.4% following a 1.4% increase in the previous month. Wholesale sales are expected to have increased by 0.4% following a 0.3% decline in the previous month. FRIDAY, OCTOBER 10 The International trade deficit in August is expected to have narrowed to $59.0 bln from $62.2 bln in the previous month. 'On the import side, oil is likely to be the biggest swing factor, as petroleum import prices dropped 13% on the month.

Non-oil imports should also be soft due to weakness in domestic demand,' said Credit Suisse economists. 'On the export side, we look for more of the same -- global demand and the relative weakness of the dollar should help generate a solid advance,' Credit Suisse economists added.

Import prices are expected to have declined by 2.5% in August following a 3.7% decline in the previous month. 'Demand for commodities and energy declined perceptibly during the period and the risk for the trading day is to the downside,' said Joseph Brusuelas of Merk Investments. 'Moreover, there are now signs that reduced demand in the US has spilled over to other industrialized nations where firms may feel pressed to reduce prices to control inventory levels and maintain market share abroad,' Brusuelas added.

The US budget is expected to have had a surplus of $68.5 bln this September, less than the $112.9 bln surplus in September 2007. tessa.moran@thomsonreuters.com tlm/wash/wash COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.