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Week Ahead: Will Housing Build on Its Momentum?

Jeremy Glaser

For Morningstar I'm Jeremy Glaser. Welcome to the Week Ahead. 

The week starting Aug. 24 looks set to be reasonably quiet with some economic data releases but only a smattering of earnings.

Housing will be in focus with data on home prices, new home sales, and pending home sales due.

We'll be looking to see if housing can continue the positive momentum it has seen in recent months.

Toll Brothers, the high-end homebuilder, will also report earnings this week, giving us some more information on what is happening in that segment of the market.

Morningstar's director of economic analysis Bob Johnson sees housing as one of the key drivers of growth in the months ahead, so continued good news here is important for the broader economy.

One of the other keys to growth will be the consumer, and we'll get consumption and income data for July on Friday. This data can be very volatile on a month-to-month basis, but we will be looking for year-over-year growth to remain close to 3%.

There won't be much in the way of earnings, but we will be watching wide-moat Tiffany's report on Thursday. The firm is facing stiff headwinds from a strong U.S. dollar, but last quarter they reported better-than-expected results. We'll see if the firm can continue to be resilient and get a snapshot of the global luxury consumer.

Stay tuned to all week for our take on these topics and more.