Looking Ahead: Week of January 15 to January 19
Market News International compiles a market consensus that surveys 15 - 20 economists each week.

Tuesday
Economists are predicting that business inventories will increase 0.5 percent in November after rising 0.6 percent in October. At the same time, economists are looking for a slight dip in sales. Rising inventories with falling sales points to an increasing inventory-to-sales ratio. It also suggests that the inventory build-up is probably not desired and production cuts are likely. (Forecast range: 0.2 to 0.7 percent)

Wednesday
Economists are predicting that the consumer price index will edge up 0.2 percent in December. This would match the October and November gains. (Forecast range: 0.1 to 0.3 percent) Excluding food and energy prices, the CPI is expected to also edge up 0.2 percent in December after reporting a 0.3 percent rise in the previous month. (Forecast range: 0.0 to 0.2 percent)

The consensus forecast is looking for a 0.5 percent drop in the index of industrial production in December. This is based on declines in factory payrolls as well as a drop in the average workweek for the month. (Forecast range: -0.1 to -1.5 percent) A drop in production also implied a decline in the capacity utilization rate. The consensus forecast is looked for a drop to 80.9 percent in December from 81.6 percent in the previous month. (Forecast range: 80.3 to 81.2 percent)

The Beige Book is coming out and will be closing scrutinized for signs of weakness in retail, housing and manufacturing. Market players will also look for a loosening in the labor market.

Thursday
Market participants are expecting new jobless claims to increase 10,000 in the week ended January 13 from last week's 345,000 level. (Forecast range: +5,000 to +40,000)

The consensus forecast is calling for housing starts to record a 4 percent drop in December to a 1.5 million-unit rate despite falling mortgage rates. (Forecast range: 1.45 to 1.52 million-unit rate) At the same time, they are predicting housing permits to drop nearly 5 percent to a 1.52 million-unit rate. (Forecast range: 1.50 to 1.53 million-unit rate)

Economists are predicting that the Philadelphia Fed's business outlook survey will decline further in January to -8.8 from a level of -6.1 in December. Any level below the zero mark reflects a contracting manufacturing sector in this district. This is a good indicator for industrial production. (Forecast range: -2.0 to -15.0)

Friday
The international trade deficit on goods and services is expected remain roughly unchanged in November at -33 billion. The deficit had narrowed slightly in October even though both imports and exports had posted declines for the month. (Forecast range$-30.5 billion to $-34.0 billion)