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The Calendar for September

08/30/2010
As we head into September, I've developed a calendar of key economic indicators and meaningful market events that I'll be watching throughout the month.  A few highlights: 
  • Manufacturing has led the U.S. and global economic recovery since 2009, and so major manufacturing indicators are important to follow. September will be barely underway when the market begins to digest critical global manufacturing data with the release of August reports for the U.S. (ISM Manufacturing Index) and China (China PMI). Together, these metrics give a comprehensive snapshot of the global economy's health, as measured by industrial output. 
  • U.S. unemployment is another important indicator of the direction the market is headed, and I'll be eager to see the Labor Department's private sector jobs data for August on the 3rd. Later, August data for industrial production on the 15th, durable goods orders on the 24th, and second-quarter final estimate GDP will add to the intelligence I gather on the state of the U.S. economy.
  • The Tuesday after Labor Day, Wall Street welcomes money managers back from summer vacation.  While not an indicator per se, like the first day of school, this event signifies that it's back to business and a pick-up in market activity after the summer doldrums. It's also back to work for the U.S. Government when the House and Senate reconvene on the 13th after summer break. Normally, before mid-term elections, Capitol Hill is quiet, but this year will likely be different with negative sentiment directed at incumbents. A major fiscal policy decision looms before Congress: What to do about the Bush tax cuts expiring at the end of the year? Whether continued tax cuts or tax increases, the fiscal impact will be deeply felt in the markets.
  • I'll be monitoring world banking powers for changes in key rates or monetary policy, starting with the European Central Bank on the 2nd, followed by the Bank of England on the 9th.  And my attention will be riveted on the Federal Open Market Committee announcement on the 21st for news of any further measures the Fed may take to manage the size of its balance sheet. Finally, I'll also keep a watchful eye on U.S. Treasury auctions the month to see what kind of demand there is for 3-year, 10-year and 30-year Treasuries, in particular and the current market price. The month closes out with the final-estimate release of Q2 Gross Domestic Product which also bears watching.
I'll provide more insights on each of these events as they occur.  Sign up for the RSS Feed for my blog to be alerted as I make new posts.  Click here for a complete view of the key economic indicators and meaningful market events in September.

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