Mortgages, Retail Sales, Fed Data On Tap

 |  Includes: DIA, QQQ, SPY
by: optionMONSTER

Today's economic calendar includes the weekly mortgage data and retail sales reports, as well as the Fed's Beige Book at 2 p.m. ET. That report, which is considered an important leading indicator, is an anecdotal survey of regional economic activity before the release of more complete surveys.

At 7 a.m. ET, MBA Purchase Applications will be released. There are several components to the report, but I focus only on the purchases component because it indicates new economic activity rather than refinancing.

Economists do not make estimates for this report, but last week purchases came in at 159.3. If this week's number comes in higher than that reading by 5 percent or more, it would be bullish. If the number is instead lower by the same margin, it would be bearish.

At 7:45 a.m. ET, the weekly ICSC/Goldman Store Sales report will be released. There are two parts to the report, the week-over-week and year-over-year changes. Most traders focus on the year-over-year number because it is a better indicator of the longer-term trend.

The last week-over-week reading showed a gain of 0.1 percent, while the year-over-year data in the previous report had a 3 percent gain. Stronger-than-expected positive numbers would be seen as bullish, while negative results would be bearish.

The weekly Redbook Store Sales will be reported at 8:55 a.m. ET. As with the ICSC-Goldman report, there are two components to watch--the more volatile month-over-month change and the the year-over-year comparison, which shows the broader trend best.

The last month-over-month change was a gain of 0.1 percent. The previous report's year-over-year data showed a gain of 4 percent. Negative numbers in either series would be bearish.