After a bruising week for the global equity market, investors will be focusing on a slew of economic reports around manufacturing, home sales and the Federal Reserve's Jackson Hole symposium this week. U.S. equity markets have been under pressure as investor sentiment cooled towards stocks amid rising COVID-19 cases, more signs of inflation and a pullback in retail sales and spending. 

Meanwhile, Bitcoin and other popular cryptocurrencies have been in an uptrend as buyer demand returned to the crypto-patch.

Here are the returns for major asset classes and Bitcoin, year-to-date.

EU Manufacturing

The EA Markit Manufacturing PMI Flash report for August will be released on Monday, which should provide an indication on whether manufacturing in the eurozone has slowed in the past few weeks amid rising COVID-19 cases and supply chain disruptions. 

U.S. Housing Watch

The U.S. housing market will be back in focus with a report on existing home sales for July on Monday, and new home sales numbers released on Tuesday. We know the red-hot housing market is cooling, and should continue to do so as we head into the fall. Housing stocks like Toll Brothers (TOL) and KB Home (KBH), are also feeling the chill as investors anticipate slower growth ahead.

Jobs Watch

Thursday's report on initial weekly unemployment claims and continuing claims will also reflect the sensitivity of the U.S. labor market. Weekly claims fell to 348,000 last week, and continuing claims fell to 2.8 million, both pandemic-era lows. Will those declines continue given the rise in COVID-19 cases?

Spending Slowdown

On Friday, U.S. personal spending and inflation expectations figures will be released for July, and we know that spending slowed dramatically last month, especially for automobiles and discretionary items. Friday's report will provide more detail on where the spending slowed the most, and how big a factor inflation played in the slowdown.

The Fed Heads for the Mountains

All of these economic data points will be discussed by central bankers and economists next weekend as the Federal Reserve hosts its annual Jackson Hole Economic Symposium in Wyoming. Between fly fishing, mountain biking and grilled Bison by the fire, Fed Chair Jay Powell and other officials will discuss the path forward for monetary policy and the obstacles in the way of the recovery. Don't expect any policy decisions to come down from the mountain, but there should be some fun pictures.

1/ QUICK HITS

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2/ THE BIG STORY

Builders Backtrack

Homebuilder confidence fell to a 13-month low because of rising prices for materials, supply issues, and “sticker shock” for buyers hoping to purchase a new home.

The National Association of Homebuilders (NAHB)/Wells Fargo Housing Market Index (HMI) for August dropped 5 points to 75. It was 78 last August. Any reading above 50 is considered positive.

NAHB Chief Economist Robert Dietz said despite continued consumer demand for housing, higher costs and access to materials for homebuilders are limiting new home construction.

"Sticker Shock"

The group’s chairman, Chuck Fowke, added that buyer traffic has fallen to its lowest point since July 2020 as some prospective homeowners are “facing sticker shock due to high construction costs.” Last month the Census Bureau reported the median sales price of a new single-family home in June was $361,800, while the average was $428,700. Fowke called on government leaders to take steps to find long-term solutions to supply chain issues that are fueling housing price increases.

However, Dietz noted that while supply-side limitations are holding back homebuilding, he is optimistic production bottlenecks will ease in the next few months and the market will return to normal conditions.

Chart courtesy National Home Builders Assocation

3/ TODAY IN HISTORY

August 22, 1902

Photo Courtesy: Getty Images / Antoine Antoniol / Stringer

On this day in 1902, the Cadillac Automobile Company was founded by Henry Leland, an engineer from Detroit. Leland was initially hired by the Henry Ford Company's investors to value and liquidate the company, after Henry Ford left following disputes with his financial backers. The name Cadillac comes from Antoine de la Moth Cadillac, who founded the city of Detroit. Leland determined that the outer body parts at the Ford Company could be reused, but with a new, more compact engine that Leland engineered. In 1903 the automaker sold its first car. Cadillac quickly grew into a premier luxury automaker, known for its reliability. In 1909, Cadillac was sold to General Motors. 

Source: Yahoo Autos

4/ WORD OF THE DAY

Agribusiness

Agribusiness is the business sector encompassing farming and farming-related commercial activities. It involves all the steps required to send an agricultural good to market, namely production, processing, and distribution. This industry is an important component of the economy in countries with arable land since agricultural products can be exported.

Agribusiness treats the different aspects of raising agricultural products as an integrated system. Farmers raise animals and harvest fruits and vegetables with the help of sophisticated harvesting techniques, including the use of GPS to direct operations. Manufacturers develop increasingly efficient machines that can drive themselves. Processing plants determine the best way to clean and package livestock for shipping. While each subset of the industry is unlikely to interact directly with the consumer, each is focused on operating efficiently in order to keep prices reasonable.