Why You Should Blow Off the Retail Sales Report -- Yet Again
NEW YORK (TheStreet) -- So how did that happen?
Retail sales in June climbed just 0.2% in June, the Census Bureau said today, missing just about every forecast and raising a flag about the stock market's recent advances, while underscoring the Federal Reserve's reticence about raising interest rates too early in a long-delayed recovery. But the report has so many oddities that it's likely to get revised upward when the Census reports preliminary July data next month.
The biggest piece of weird news in the report is that sales at auto and parts dealers declined by 0.3% -- not at all the expectation after auto makers had reported strong June sales earlier in the month.
The next weirdest is that sales at gasoline stations rose only 0.3%, though gas prices are relatively high. Bullish economist Joel Naroff, whose firm consults for regional banks and other clients, had expected those two categories to drive a gain of 1% or more.SanDisk Is a Winner, and It's Just Getting Started GE Hopes Transformaton Brings Energy Back to Its Shares Will Portuguese Banco Espirito Santo Doom European Financial Stocks? The weakness was evident in a long list of cyclical sectors where you would look for signs of an accelerating expansion. Home-improvement store sales dropped a reported 1%, and furniture sales dipped 0.1%. Neither is a great sign for the housing and remodeling market, whose continued recovery is important to the bull case for stocks now.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV