First, from Merrill Lynch:
We have revised up our forecast for 3Q GDP growth to 3.5% from 3.0% and 2Q tracking has moved up to 4.8%, from 4.0%.
Some of this is a bounce back from the -2.1% decline in Q1 GDP (on a seasonally adjusted annual rate basis, SAAR).
Friday:
• At 8:30 AM ET, Retail sales for August will be released. The consensus is for retail sales to increase 0.4% in August, and to increase 0.3% ex-autos.
• At 9:55 AM, the Reuter’s/University of Michigan’s Consumer sentiment index (preliminary for September). The consensus is for a reading of 83.1, up from 82.5 in August.
• Also at 10:00 AM, Manufacturing and Trade: Inventories and Sales (business inventories) report for July. The consensus is for a 0.5% increase in inventories.