Retail Sales Disappoint Again
U.S. retail sales rose less than expected in June, adding to signs of a slowdown in economic growth that could argue against the Federal Reserve's plan to start trimming its monetary stimulus later this year.
The Commerce Department said on Monday retail sales increased 0.4 percent last month as demand for automobiles soared. However, sales of building materials fell.
But Tyler Durden has an even dimmer take:
If the worst retail sales number in 12 months doesn't send the S&P to 1,700 nothing will. Because that is precisely the data point we got moments ago when the Census bureau reported June retail sales growth of 0.4%, missing expectations of a 0.8% print and down from a downward revised 0.5%. However, the only growth in the headline number was thanks to auto and gas sales. Ex autos retail sales were unchanged on expectations of a 0.5% increase, while ex autos and gas the print was down -0.1%, crushing hopes of a +0.4% increase. Any minute now, however, the Fed's S&P500 trickle down wil, with a 4 year delay, hit the end consumer: the entire Princeton economics department pinky swears.
Ironically for the housing recovery had a bit of a sputter, with Building Material and related retail sales dropping 2.2% on an adjusted basis in June (and crashing Unadjusted but who cares about real, unfudged data).
Shout it with me: Stimulus now, stimulus tomorrow, stimulus forever!
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