Retail Sales Unexpectedly Increased in June Crossing Wall Street

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.

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