The Business Week Ahead

Two highlights will top the week, the first not likely to be much of a highlight at all with expectations uniformly calling for no action at the FOMC meeting. There is some uncertainty, however, to the second highlight: Friday's GDP report where Econoday's second-quarter consensus is calling for solid 2.6 percent growth led by standout strength in consumer spending. Home sales were the prior week's upbeat theme, raising expectations for strength in new home sales on Tuesday and pending home sales on Wednesday. But Wednesday's big news, aside from the FOMC announcement, will be durable goods where no better than mixed results are expected. The employment cost index will be posted on Friday along with GDP and expectations are calling for no more than moderate pressure, probably not enough to boost a still sagging inflation outlook. And expectations will round out the week, that is the final July reading on consumer sentiment which at mid-month, held down by the expectations component, took a definite Brexit dip.