Looking Ahead: Week of December 17 through 21

The economy is bumping along on a low but positive trajectory. The consumer sector somehow keeps showing more life than you might expect. Manufacturing is sluggish but not negative. And the Fed has been extremely creative in keeping rates low and liquidity in the financial markets. Still, resolution of the fiscal cliff is needed—preferably by Christmas but many would be happy to merely beat the January 1 deadline. Upcoming news is loaded with data on manufacturing, housing, and the consumer. Hurricane Sandy has caused sharp down and up swings in production numbers but net still soft. So, regional Fed manufacturing news from New York, Philadelphia, and Kansas City will garner attention. Housing has been on a moderate uptrend and traders want to see housing keep the recovery going. Updates are posted for housing starts and permits, and existing home sales. The consumer sector recently has been mixed with spending moderately healthy but sentiment dropping, suggesting spending is at risk. This week’s updates include personal income and outlays and consumer sentiment.