Home
Our Services
Who We Are
News & Ideas
Financial Briefs
Featured News
Articles Of Interest
Market Data Bank
ClientVault
Account Lookup
Resources
Blog
Local Partners
Client Forms
Event Calendar
Portal Login
Alliance Links
Contact Us
Tell A Friend
Disclosure
Video Blog
Pic Rotator
Log In

News & Ideas


Printer Friendly Version
Index
Federal Reserve Projects Strong Growth
The Best People Were Wrong 
This Week’s Investment News In Six Charts
U.S. Investor Picture Of The Week
The Conference Board Backs Off Its Recession Forecast
Softening Economic Data, Inflation Fears Dampen Stock Rally
S&P 500 Closes Above 5000 For The First Time Ever
Why America Is The World’s Economic Leader
Investment News For The Week Ended Friday, January 26
Why Stocks Broke The All-Time Record High
A Strategic Update, With Stocks Near All-Time High And Crises Unfolding
2024 Begins With Positive Economic News
How 2023 Will Be Remembered In Financial History
A Good Week For The Economy And Investors 
Earnings Estimates Imply A Bullish Path For Stocks
New Jobs Data Bolsters Hopes For 2024 Economy
 

Good News: Real Retail Sales Dropped Fractionally In The Past Year

5045 2

Retail sales climbed by +8.8% in the 12 months through June, according to the release Friday at 8:30 a.m., by the Census Bureau. The news brightened the near-term economic outlook, and it sparked a +1.9% one-day surge in stock prices.

The sharp rally in stocks followed Wednesday’s worse-than-expected inflation release showing the Consumer Price Index (CPI) soared +9.1% in the same 12-month period through June. To be clear, the +8.8% retail sales surge, after adjusting for the +9.1% CPI, meant real retail sales in the past year were slightly negative -- down three tenths of 1%, and the stock market shot up nearly +2% on that news.

Retail sales are crucially important to U.S. growth. Seventy percent of U.S. growth is consumer-driven and retail sales reflect 30% of all consumer activity. So why would negative growth be positive news and drive a sharp one-day rally?

As we said in our weekly report two weeks ago, the worst of the economic news may already have been discounted in stock prices. No one can predict a market bottom, but the economy is not falling apart and it’s still possible that a recession may not occur.

5045 3

The Standard & Poor’s 500 stock index closed this Friday at 3,863.16. The index gained +1.92% from Thursday and +0.93% from last Friday. A proxy of America’s global economic leadership, the S&P 500 is up +53.29% since the Covid-19 bear-market low of March 23, 2020, and down -21.55% from the January 3rd all-time high.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.


Email this article to a friend


This article was written by a professional financial journalist for LifePlan and is not intended as legal or investment advice.

©2024 Advisor Products Inc. All Rights Reserved.