Retail Sales Unexpectedly Increased in June
The stock market is down again today. This could be our third loss in the last four days. The S&P 500 is on pace for its first back-to-back losses since June 17-18. The S&P 500 is trading 2.6% above its 50-day moving average, but 252 stocks in the index are trading below their 50-DMA.
This morning’s retail sales report showed an unexpected increase for June of 0.6%.
Receipts at auto dealerships fell 2.0% after declining 4.6% in May. Sales at clothing stores increased 2.6%. Consumers increased spending at restaurants and bars, leading to a 2.3% rise in receipts. Sales at restaurants and bars increased 40.2% compared to June 2020.
Receipts at electronics and appliance stores rose 3.3%; sales at furniture stores fell 3.6%. Sales at sporting goods, hobby, musical instrument and book stores dropped 1.7%. Receipts at food and beverage stores gained 0.6%. Sales at building material stores fell 1.6%.
Online retail sales rose 1.2%, likely lifted by Amazon’s Prime Day, which was emulated by other retailers.
Excluding automobiles, gasoline, building materials and food services, retail sales increased 1.1% last month after a downwardly revised 1.4% decrease in May. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. They were previously estimated to have dropped 0.7% in May.
Here’s a great stat from Ryan Detrick. In May, lumber was up more than 130% YTD. It’s now down 20%.
Check out the growing gap between High Beta and Low Vol. The S&P 500 High Beta Index is in red and Low Vol in blue.
Posted by Eddy Elfenbein on July 16th, 2021 at 12:56 pm
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.