This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Ahead Of The Bell: US Retail Sales

WASHINGTON (AP) â¿¿ U.S. retail sales likely declined in October because Superstorm Sandy closed businesses in the Northeast, fewer Americans bought cars and gas prices fell sharply.

Economists forecast that retail spending dipped 0.1 percent last month from September, according to a survey by FactSet. That would be the first drop after three straight increases. The Commerce Department will release its report at 8:30 a.m. EST Wednesday.

In September, retail sales jumped 1.1 percent. Spending rose in nearly all categories. Auto sales increased at a healthy pace and the release of Apple's newest iPhone pushed up sales at electronics stores.

The buying spree helped lift economic growth in the July-September quarter and reflected growing consumer confidence. Consumer spending drives nearly 70 percent of economic activity.

The October decline in retail sales is likely to be temporary and not the start of a trend, economists said.

A key reason is that Superstorm Sandy hit the East Coast on Oct. 29 and disrupted businesses from North Carolina to Maine.

The storm also lowered auto sales last month by about 30,000, according to TrueCar.com. Overall, car sales dipped to an annual pace of 14.3 million in October, down from a 14.9 million pace in September.

Retail sales are likely to rebound this month, analysts said, because Americans are spending more on repairs and making up for lost shopping trips.

Another reason sales likely declined last month is gas prices fell steeply, lowering total sales figures at gas stations. The average price for a gallon of gas was $3.44 Tuesday, according to AAA. That's down 35 cents from a month earlier.

Excluding autos, gasoline and building materials, October retail sales are forecast to rise 0.3 percent, according to economists at JPMorgan Chase. That suggests consumers are still willing to spend more on most goods.

Sales at many large retail chains were strong last month. Sales at 21 large retailers, from the Costco warehouse club to Macy's department store, rose 5 percent compared to the same month a year ago, according to the International Council of Shopping Centers.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs