The Week Ahead...

A heavy week is in store that will build up to Friday's release of the core PCE price index. Tuesday will see a concentration in the housing sector with the FHFA and Case-Shiller price reports, where forecasts are mixed, followed by new home sales which, having been flat this year, are expected to bounce sharply higher. Pending home sales will follow on Thursday with the latest indication on existing home sales while GDP, benefiting from prior gains in retail sales and inventories, is expected to be revised solidly higher to plus 3.2 percent. But the highlight by far will be the last glimpse of the core PCE price index before the September FOMC meeting. And no pressure is expected with the Econoday consensus calling for an increase of only 0.1 percent.