(As of 7:30 am pacific)
We’re back in the red after a brief rally Friday sent
stocks higher. Today, stocks traded
lower as economic reports brought investors back to grips with the slowdown. The Commerce Department reported today that
June retail sales fell 0.5%, for the 3rd straight monthly
decline. The last time retail sales
declined for 3 straight months was in the latter half of 2008. Retail/Consumer spending accounts for more
than 2/3 of our nation’s economic growth.
The largest decline in the report came at gas stations, led by the drop
in fuel prices which will ultimately be a good thing for consumers, putting
dollars back in their pockets. Another
report, the Empire State Index, which measures manufacturing activity in the
New York area, showed manufacturing expanding at a faster pace than June. European markets are down and stocks in Asia
were mixed today. Gold prices were
slightly down and oil was slightly up.
The US dollar was mixed but up against the euro while the 10 yr.
treasury continued its decline, hitting 1.45% in early morning trading. Despite the poor retail sales, volatility
remained in check, up only 0.78% and falling as the morning goes on. I expect a fairly quiet day today, with
volume picking up tomorrow as several major companies report Q2 earnings
including Coca-Cola, Johnson & Johnson, and Intel.
