A Busy Week of Economic Data and Earnings on Tap

July 22, 2024

A Busy Week of Economic Data and Earnings on Tap Photo

With the bond market pricing in a near 100% chance for a September Federal Reserve (Fed) rate cut, this week’s busy economic calendar will offer more important data on U.S. economic growth and inflation. This week’s data may finally validate that Fed rate cuts are set to begin.

The initial read on second-quarter gross domestic product (GDP) is scheduled to be released on Thursday. Second-quarter GDP is expected to grow by 1.9%, up from 1.4% in the first quarter.1 The first half of 2024 economic growth is well within the Fed’s “comfort zone” after surprising to the upside during the second half of 2023.   

Fresh inflation data is set to be released Friday with the June Personal Consumption Expenditures (PCE) Index release. June PCE is expected to be flat, with core PCE up 0.1%,2 suggesting the Fed will receive more evidence inflation is trending back toward its 2% target.

 

Sources:

1,2MarketWatch – U.S. Economic Calendar; as of 7/22/24

Tags: bond market | Federal Reserve | Inflation | Gross Domestic Product (GDP) | PCE | Economic growth

< Go to Monday Morning Perspectives

This blog post is for informational use only. The views expressed are those of the author(s), and do not necessarily reflect the views of Penn Mutual Asset Management. This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Any statements about financial and company performance of The Penn Mutual Life Insurance Company or its insurance subsidiaries (each, “Client”) made by the author is provided with a written consent from the Client.  Penn Mutual Asset Management is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.

Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.

All trademarks are the property of their respective owners. This material may not be reproduced in whole or in part in any form, or referred to in any other publication, without express written permission.

Subscribe to Our Publications