On tap for Thursday: jobless........>

US DATA PREVIEW: On tap for Thursday: jobless claims (220k est); Q4 GDP (init)

(2.1% est); ISM-Milwaukee Mfg Index; MNI Chicago PMI (58.0 est); Q4 housing

vacancies rate. Multiple Fed speakers on tap with Fed Chair Powell on economic

developments and long term challenges dinner event in NY.

- RBC economists note a "downgrade to consumer spending on the heels of one of

the uglier retail sales reports in years (Dec control retail sales tanked -1.7%

m/m) led to a notable mark-down to our 4Q GDP tracking recently. Indeed, we have

baked in just a 2.0% q/q annualized advance for topline growth." Citing healthy

real personal consumption and Capex vs. disappointing trade and inventories, RBC

anticipates "rather solid GDP report, with final sales to private domestic

purchasers (which excludes inventories and flips imports and export, i.e., a

better gauge of domestic demand) near 3%."

- RBS economists said though they are "somewhat skeptical of the results," they

are obliged to lower their "Q4 forecasts for both consumer spending and real

GDP. Indeed, in the wake of the retail sales data, consumer spending now looks

likely to have risen by only 2.8% annualized in Q4."