Key U.S. Data Releases and Events

Other major issues in financial markets would be the Fed's TALF program, which has been gaining traction in recent weeks. Any additional deal momentum under the TALF would be a positive development for the credit markets, as both business and consumer credit growth has stalled out, notwithstanding improved general conditions in the financial markets.

KEY U.S. DATA RELEASES THIS WEEK

Tuesday, May 19 – Housing Starts and Building Permits (Apr.)

Starts

• IHS Global Insight: 0.510 Mil.
• Consensus: 0.520 Mil.
• Last Actual: 0.510 Mil. (Mar.)

Permits

• IHS Global Insight: 0.527 Mil.
• Consensus: 0.530 Mil.
• Last Actual: 0.516 Mil. (Mar.)

What to Look For

• Housing starts are expected to be flat.
• Permits will improve on an increase in multi-unit permits.

Implications

The housing market is showing signs of stabilizing. Single-family housing starts have not budged in two months. New home sales are up from January's all-time low. We are not ready to call the bottom yet, however. The economy is still shedding jobs at frightening pace, and credit remains tight. For April, we project that housing starts were unchanged, with a small drop in single-family starts offset by an increase in multi-family starts. Permits will improve on an increase in multi-unit permits.