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A smooth week ahead in the U.S, debt vote within the White House’s call
On Thursday, the Senate gave approval to the House’s plan to temporary suspend the legalborrowing limit through May 19, which will reset the debt limit at a higher level, thus allowingthe Treasury Department for extra borrowing to cover its federal obligations.
The bill now goes to the White House for President Obama’s signature, who‘s approval now isonly reasonable.
With this in mind, the U.S. economy contracted surprisingly by 0.1% in the fourth quarter, in astark contrast with the third quarter, which expanded 3.1%.
Also, the U.S. labor sector failed to meet estimates on the monthly non-farm payrolls, as itadded 157 thousand jobs, compared with the median estimate at 165 thousand. In addition,U.S. unemployment rate unexpectedly increased to 7.9%.
Moving to the upcoming week, beginning with Factory Orders for December, as analysts’estimate a rise of 2.2% in that period, from a flat reading the month before, as the Holidayseason gave some support to the manufacturing sector in that period.
Moreover, the Institute for Supply Management will release its Non-Manufacturing compositeon Tuesday. The index is expected to dip slightly, but should remain in expansionary territory.
Also, the deficit in the nation’s trade balance is estimated to have eased a little in December,as the U.S. dollar has gone under a notable descent in late December. U.S. trade deficit isestimated to drop to $46 billion dollar, from $48.7 billion the month before.
On the one hand, major companies are to publish their fourth quarter earnings reports thisweek, with Visa Inc, Moody’s, Sprint Nextel Corp, NYSE Euronext, Coca-Cola, and Philip MorrisInternational.