Economic Reports Expected to Be Mixed

A jump in April retail sales last week helped spark a buying spree, but a rise in weekly jobless claims and a drop in housing starts helped temper investor enthusiasm. This week’s economic data are not expected to move the market dramatically and may fail to answer questions about the economy.

“I think the economic data is going to continue to be mixed to positive,” said Gary Wedbush, head of trading at regional investment bank Wedbush Morgan.

The index of leading economic indicators is set for release today. Wall Street economists expect the index to have dipped 0.2% in April after a rise of 0.1% in March.

A revised estimate of gross domestic product, which measures the value of goods and services produced within U.S. borders, is expected to show an annual growth rate of 6% in the first quarter Friday. Advance numbers had shown that the GDP raced ahead at an annual rate of 5.8% in the first three months of this year, marking the biggest GDP gain since an 8.3% jump in the final quarter of 1999. Economists, however, doubt the economy can maintain that pace through the year.

A report on durable goods due Thursday is forecast to show April orders rose 0.4% after declining 0.5% in March. New-home sales, slated for release Friday, are forecast to edge up to 882,000 in April from 878,000 in March.