(as of 7:00 AM PST)
Retailers had a hard time holding on to customers this last quarter. Ugly revenue and profit results in the sector are pulling down stock indexes this morning. Most notable was Nordstrom which took a 20% hit in its stock price when it missed profit projections badly. The index of retail sales saw an increase of a meager .2%, below analysts expectations, but ahead of last months negative number. On the positive side, the Producer Price Index (PPI) declined again indicating inflation numbers are well in check and adding an additional argument against a December rate hike. Oil continues to be a drag, with a barrel of WTI (West Texas Intermediate) dropping to near $40 per barrel. That's a plus for the consumer but a problem for the energy sector which is taking another big hit. The dollar continues its relentless rise against other global currencies putting a dent in precious metals prices and other commodities. Interest rates are well in check, but creeping slightly higher on fear of a December rate hike. Too much downside pressure from retailers and energy is likely to weigh on markets going forward today in what could be another dismal performance.
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