LAST WEEK

News & Commentary Weekly Highlights:

• CBS News: The Early Line on Brexit’s Economic Impact (Thursday)
• Wall Street Journal: U.S. Home Prices Continued Strong Growth in April, Case-Shiller Says (Tuesday)
• Financial Times: Carney [BoE Governor] prepares for ‘economic post-traumatic stress’ (Thursday)
• Market Watch: This Economist Thinks China is Headed for a 1929-Style Depression (Friday)
• Financial Times: Xi Jinping pledges return to Marxist roots for China’s Communists (Friday)

 

Top Economic Indicator Highlights:

Gross Domestic Product (Third estimate, Q1-2016)

• Real GDP Quarterly Change (annual rate): Q1-2016: 1.1%, Q4-2015: 1.4%, Recovery avg.: 2.1%
• Noteworthy: Q1 real GDP growth was revised from 0.8% to 1.1%. The upward revision was attributed to more exports reported than previously estimated.
• Current Forecasts for Q2 2016: Atlanta Fed’s GDPNow forecasts Q2-2016 real GDP growth at 2.6%. The Blue Chip Consensus is 2.4%; the average of ten most optimistic (pessimistic) forecasts is 3.2% (1.7%).

 

 

THIS WEEK

Upcoming Economic Reports & Releases:

Major Indicators

• Manufacturers’ Shipments, Inventories, & Orders (10:00am, Tue)
• Trade Balance (8:30am, Wed)
• ISM Non-Manufacturing (10:00am, Wed)
• ADP National Employment Report (8:15am, Thu)
• Initial Claims (8:30am, Thu)
• Consumer Credit (3:00pm, Thu)
• Employment Situation (8:30am, Fri)

 

 

Chart of the Week:

 

 

 

This chart shows the relative performance of stock market indices in the United States, United Kingdom, Germany, France, Italy, and Greece following the Brexit referendum results. Only the United Kingdom’s stocks were higher one week later.