Stocks in the S&P 500 (SPX) are on the rise today following the release of better-than-expected economic data. The Census Bureau’s retail sales report showed a 2.28% year-over-year increase in spending, defying expectations of a decrease. Month-over-month, spending remained steady at 0%, surpassing forecasts of a 0.3% decline. The core retail figure, which excludes automobile spending, also saw a 0.4% month-over-month increase, beating estimates.
These positive results come at a crucial time as inflation cools and the job market stabilizes. A healthy retail sector could potentially help the Federal Reserve steer clear of a recession. U.S. futures dipped slightly this morning after the Dow Jones Industrial Average (DJIA) hit a record high yesterday. Futures for the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones were down around 0.14%, 0.13%, and 0.1% respectively.
Investors are eagerly awaiting the release of the Retail Sales report for June, along with other economic indicators and Q2 earnings reports from major financial companies like Bank of America (BAC) and Morgan Stanley (MS). In corporate news, Goldman Sachs (GS) saw a 2.5% increase in stock value after reporting strong Q2 results, while Macy’s (M) stock dropped 12% following the end of buyout talks.
As the U.S. 10-year treasury yield hovers around 4.19% and WTI crude oil futures remain near $81.24 per barrel, European markets opened lower today. In Asia-Pacific, most indices traded higher, with China’s Shanghai Composite and Japan’s Nikkei posting gains. However, Hong Kong’s Hang Seng index was down 1.6%.
Overall, the positive economic data and market performance indicate a potential shift in investor sentiment and confidence in the global economy. Stay tuned for more updates on market trends and economic developments.
