@ Wall Street
The key economic reports that have come in this month have been mostly stronger than expected, suggesting third-quarter GDP growth of around 3%. The latest, September?s retail sales report, showed sales expanding at the fastest pace since February, and included upward revisions to July and August.
These reports (and better than anticipated news from Europe), have propelled the S&P 500 forward 10% since it nearly hit bear territory (defined as a 20% drop in the index) on October 3. The news on the U.S. economy is still not great. But it is better than we thought two weeks ago.
Housing, industrial production and prices will share the spotlight in the upcoming week. Housing starts for September are expected to be up, but permits and existing home sales will likely be down as housing continues moving sideways. Industrial production should be down on a drop in electricity usage, although the manufacturing component is likely to be up slightly.
Higher energy prices should push the headline finished goods PPI up 0.5%, even though core producer prices should be unchanged. Finally, rising gasoline prices should help push the CPI up 0.3% in September, but core CPI inflation should come in at 0.2% for the third straight month.
Industrial Production (Sep.) The drags will be lower electricity output after two hotter-than-normal summer months, and lost oil and gas production from hurricane shutdowns. On the manufacturing side, vehicle production should be flat after a big jump in August, and core manufacturing may inch higher in a mediocre climate. Underneath the crosscurrents, the bulk of manufacturing is just drifting, moving sideways to slightly higher ? but not tipping into recession.
@ The White House
In the morning, the President will travel to Asheville, North Carolina to begin his three-day American Jobs Act bus tour where he will discuss jobs and the economy.
While at Asheville Regional Airport, the President will deliver remarks.
Later, the President will deliver remarks at West Wilkes High School in Millers Creek, North Carolina. The President will spend the night in Greensboro, North Carolina.