To: sam who wrote (16748 ) 5/12/1999 8:45:00 AM From: Jenne Read Replies (1) | Respond to
The April trade report comes out at 10 a.m. ET today. This release is widely watched for trends in the overall trade balance. The export data, in particular, are important for indications that a strengthening competitive position at home and/or strengthening economies overseas are boosting U.S. growth. Imports provide an indication of domestic demand. The volatility in the monthly trade balance can play an important role in GDP forecasts. The April Producer Price Index (PPI) will be made public on Thursday at 8:30 a.m. ET. The PPI measures prices of goods at the wholesale level. There are three broad subcategories within PPI: crude, intermediate, and finished. The market tracks the finished goods index most closely, as it represents prices for goods that are ready for sale to the end user. Goods prices at the crude and intermediate stages of production often provide an indication of coming inflationary pressures. The April retail sales report will be released at the same time as the PPI. The retail sales report is a measure of the total receipts of retail stores. Changes in retail sales are widely followed as timely indicators of broad consumer spending patterns. The April Consumer Price Index (CPI) is scheduled for release at 8:30 a.m. ET on Friday. The CPI is a measure of the price level of a fixed market basket of goods and services purchased by consumers. The index is used to calculate cost of living adjustments for government programs and is also the basis of COLAs for many private labor agreements. The core CPI, excluding food and energy, is seen by most economists as the best measure of inflation. April capacity utilization and industrial production will be out at 9:15 a.m. ET on Friday. Capacity utilization is seen as a critical gauge of the slack available in the economy, the 85% mark being viewed as a key barrier above which inflationary pressures are generated. The index of Industrial Production is a fixed-weight measure of the physical output of the nation's factories, mines, and utilities. The preliminary University of Michigan Consumer Sentiment Index will be reported at 10:00 a.m. ET on Friday. This parameter contains two subindexes - consumers' appraisal of current conditions and their expectations for the future. The expectations index is typically seen as having better leading indicator qualities than the current conditions index. STOCKWINNERS
