What to Watch in the Week Ahead and on Monday, Dec. 22

Fri Dec 19, 2014 3:27pm EST
 
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(The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT) WEEK AHEAD With the last full trading week of the year behind us, the markets enter into a seasonably quiet period marked by thin liquidity that can amplify moves as many are on vacation. Most economic figures will be released early in the week, and equities could continue to see selected buying, while the Treasury market may see yields rise modestly to make room for Treasury auctions of two-, five- and seven-year notes. The U.S. economy looks set to end 2014 on a strong note, even as housing struggles to kick to higher gear. Data on Tuesday from the Commerce Department will likely show that gross domestic product accelerated at a 4.3 percent annual pace in the third quarter instead of the previously reported 3.9 percent rate. The Commerce Department is also expected to report durable goods orders jumped 2.9 percent in November, after gaining 0.3 percent in October. Core capital goods orders are forecast rebounding 1.2 percent after falling 1.6 percent in October. Also on Tuesday, the Commerce Department is likely to report that consumer spending increased a solid 0.5 percent in November after advancing 0.2 percent in October. Income is forecast rising 0.5 percent after rising 0.2 percent. The Commerce Department's new home sales report is expected to show sales rising to a 460,000-unit pace in November from a 458,000-unit rate. Drugstore chain operator Walgreen Co is scheduled to report first-quarter results on Tuesday. It reported a 6.2 percent rise in quarterly sales in the fourth quarter. The economic calendar in Canada is a light one for the holiday shortened week. The only major data release is monthly gross domestic product on Tuesday, which is forecast to show growth edged up 0.1 percent in October, though that is a slower pace than the gain of 0.4 percent that was seen in September. MONDAY, DECEMBER 22 Data from the National Association of Realtors is expected to show a drop in sales of used homes in the last month. Existing home sales likely fell to a 5.20-million unit pace from October's 5.26 million units, which were at the highest level in more than a year (1000/1500). (U.S. and Canada markets will remain closed on Thursday, Dec. 25, for Christmas Day. Canada markets will also remain closed on Friday, Dec. 26, for Boxing Day.) (Compiled by Ayesha Sruti Ahmed in Bengaluru; Editing by Joyjeet Das)