A lack of supply of new residential construction continues to keep prices high, a factor compounded by higher mortgage rates. These are especially important watch items for investors as housing remains a sticky area of inflation. Will housing cool down? Housing starts for June are released Wednesday, followed by existing home sales on Thursday. Fortunately, capacity utilization has been pretty stable at just under 80%, right about the average going back to 1972. If capacity is maxed out, prices need to be raised (higher inflation) in order to bring supply more in line with demand.
GDP. Capacity utilization - or how much of factory's production capacity is being used - in particular can foreshadow moves in inflation. Industrial production and capacity utilization, also out Tuesday, shines a light on manufacturing, which attributes about 12% to U.S. Moreover, the June reading may foreshadow how retailers set to report earnings in the coming weeks did in the last month of the second quarter. Retail sales on Tuesday will provide more insight into the state of the consumer - super important considering consumption accounts for nearly 70% of U.S. Here are 3 things you need to know for the week ahead: 1. It's the expectation of a second hike by the end of the year that has come down slightly on the weaker numbers. However, the Street still views an interest rate hike in July as a foregone conclusion, with the CME FedWatch Tool pegging the odds at 96.1%. A lot was riding on these important measures of inflation after the scorching-hot ADP jobs report last week. This broad rally was thanks in large part to weaker-than-expected readings for both the consumer and producer price indexes. The tech-heavy Nasdaq Composite led the bunch with a 3% increase, while the S & P 500 added 2.4% and Dow Jones Industrial Average advanced 2.3%. Stocks bounced back this week, will all three major averages notching solid gains. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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