Durable Goods Orders
- When it’s released: 8:30 a.m.
- Why it’s important: The Durable Goods report measures the dollar volume of orders, shipments and unfilled orders of goods with an intended lifespan of three years, or more. This report is a leading indicator of manufacturing orders. While it can cause market volatility, it is subject to revisions.
GDP (Gross Domestic Product)
- When it’s released: 8:30 a.m. for the previous quarter (occasionally, this report is issued in the third week of the month)
- Why it’s important: The GDP is the broadest measure of U.S. economic activity and includes current statistics relating to growth in every sector and industry group. This report can easily move the stock market.
- When it’s released: 10 a.m.
- Why it’s important: This report compiles a monthly survey of 5,000 consumers across the U.S., and their attitudes on present and future economic conditions. The report takes consumer attitude and spending—which accounts for more than 65% of the economy-- into consideration. The more confidence we consumers feel about the economy and our personal finances, the more likely we are to spend money; of course, that fuels the economy.
- Traders please note: consumer confidence and spending reflected in the Retail Sales report don’t necessarily move in tandem.
ECI (Employment Cost Index)
- When it’s released: Quarterly, at 8:30 a.m.
- Why it’s important: This report focuses on changes in three categories: total employment costs, wages and salaries, and benefit costs. Since wage inflation can signal a raise in interest rates, traders keep an eye on the ECI.
FOMC Meeting Policy Announcement
The Federal Open Market Committee meets eight times a year, or about every six weeks, to assess and adjust monetary policy. Changes in monetary policy and interest rates are announced immediately after the meetings, at approximately 2:15 p.m. ET. Financial news networks are good announcement resources.
The meeting schedule is posted on our Economic Calendar.
- Short-term traders should beware trading when Fed policy is announced, as the markets can become highly volatile and erratic. This becomes especially true if the announcement in policy and/or rates differs from expectations.
- Remember, interest rates = the cost of money. And the cost of borrowing money has far-reaching effects in every corner of our economy.
- Stay up-to-date on FOMC meetings and announcement dates. They can have a dramatic and ongoing impact on the financial markets.
- Again, many more economic indicators are announced each month. Please refer to www.Briefing.com for complete economic report listings.
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