Economic Indicator Effects

(RightLine) — The release of Economic Reports impacts the stock market on a regular basis. The table below shows how specific Economic Reports tend to effect stock prices as a group.

Here are the typical market reactions to the major US economic reports …

Economic Indicator	Indicator	Stock Reaction	Bond Reaction	Dollar Reaction
Consumer Price Index	UP	UP	DOWN	UNCERTAIN
Consumer Price Index	DOWN	DOWN	UP	UNCERTAIN
Producer Price Index	UP	UP	DOWN	UNCERTAIN
Producer Price Index	DOWN	DOWN	UP	UNCERTAIN
Beige Book	Anecdotal description of regional economic performance used by analysts as a subjective measure of regional economic performance. Can serve as an indicator of future Fed monetary policy. Because it is subjective, its effect on the markets is determined by interpretation.
Beige Book
Employment Cost Index	The ECI is at comprehensive measure of employee compensation trends as they effect production costs. Reaction to the ECI depends on a variety of other economic conditions, particularly the Fed’s curent economic policy as it relates to inflation, unemployment, and recession.
Employment Cost Index
NAPM	UP	UP	DOWN	UP
NAPM	DOWN	DOWN	UP	DOWN
Payroll Employment	UP	UP	DOWN	UP
Payroll Employment	DOWN	DOWN	UP	DOWN
Unemployment Rate	UP	DOWN	UP	DOWN
Unemployment Rate	DOWN	UP	DOWN	UP
Car Sales	UP	UP	DOWN	UP
Car Sales	DOWN	DOWN	UP	DOWN
Retail Sales	UP	UP	DOWN	LITTLE CHANGE
Retail Sales	DOWN	DOWN	UP	LITTLE CHANGE
Industrial Production	UP	UP	DOWN	LITTLE CHANGE
Industrial Production	DOWN	DOWN	UP	LITTLE CHANGE
GNP	UP	UP	DOWN	UP
GNP	DOWN	DOWN	UP	DOWN
Housing Starts	UP	UP	DOWN	NO REACTION
Housing Starts	DOWN	DOWN	UP	NO REACTION
Capacity Utilization	UP	UP	DOWN	LITTLE CHANGE
Capacity Utilization	DOWN	DOWN	UP	LITTLE CHANGE
Durable Goods Orders	UP	UP	DOWN	NO REACTION
Durable Goods Orders	DOWN	DOWN	UP	NO REACTION
Personal Income	UP	UP	DOWN	UP
Personal Income	DOWN	DOWN	UP	DOWN
Income Consumption	UP	UP	DOWN	UP
Income Consumption	DOWN	DOWN	UP	DOWN
Leading Indicators	UP	UP	DOWN	UP
Leading Indicators	DOWN	DOWN	UP	DOWN
New Home Sales	UP	NO REACTION	DOWN	NO REACTION
New Home Sales	DOWN	NO REACTION	UP	NO REACTION
Construction Spending	UP	NO REACTION	NO REACTION	NO REACTION
Construction Spending	DOWN	NO REACTION	NO REACTION	NO REACTION
Factory Orders	UP	NO REACTION	DOWN	NO REACTION
Factory Orders	DOWN	NO REACTION	UP	NO REACTION
Business Inventories	UP	NO REACTION	UNCERTAIN	NO REACTION
Business Inventories	DOWN	NO REACTION	UNCERTAIN	NO REACTION
Trade Balance (improved deficit)	UP	UP	UNCERTAIN	UP
Trade Balance (improved deficit)	DOWN	DOWN	UNCERTAIN	DOWN
Export Prices	UP	UP	DOWN	UP
Export Prices	DOWN	DOWN	UP	DOWN
Import Prices	UP	UP	DOWN	DOWN
Import Prices	DOWN	DOWN	UP	UP