Media Oversold the Retail Story

Wrote Forbes: "Despite the strong retail performance, the market is still concerned that August could be a false reading on the market as the effects of the housing market struggles on consumers may not have factored into the numbers." Nothing about Florida or Texas or the shift in tax-free shopping days that often accompany the back-to-school period.

Same went for the Financial Times, which got jiggy with the headline: "Retail sales figures offer some therapy." Notice that the only concern expressed below was about -- uh, money market rates: "Wall Street stocks were moderately higher in afternoon trade yesterday with investors digesting better-than-expected retail sales for August amid concerns over elevated money market rates."

In the kicker, we are told what investors were looking toward for a "broader view," so I felt better. Perhaps investors were going to lump July and August sales into a combined statistic, a good idea. Uh, no. Investors were looking to the monthly employment report, the Financial Times told investors, which was true enough in and of itself, but in this context it is hardly the broader view we were looking for.

Business Week was a fascinating case. In two articles on the same day last week, it reported the number the almost the right way, then later the right way. The difference altered the message of the articles.

At 8:58 a.m., it posted an excited article about how stocks were gaining on the retail sales numbers, which came in at 3.1% vs. an expected 2.6%. The headline: " Stocks Gain on Retail Sales, Jobless Claims," introduced the following: "Reports issued Thursday eased fears about consumer spending and the labor market ..." They do make vague reference to a calendar shift, but offer no sense of the scope. Where? In one of the Dakotas, perhaps? That wouldn't be such a big deal.