Yesterday’s FOMC statement said household spending has picked up indicating strength for today’s retail sales report. Confirmation came this morning in the US Commerce Department’s Retail Sales report.
- Retail sales jumped 0.8 percent in May topping most estimates. And the results include an upward revision to April which now stands at a 0.4 percent gain.
- The report also shows balanced gains including a 1.3 percent jump at restaurants and a 0.5 percent increase for motor vehicles, both pointing to rising discretionary demand.
- Strong retail sales are generally bearish for the bond market and generally favorable for the stock market, particularly retail stocks.
Overnight Markets:
- MSCI Asia Pacific Index declined 0.9 percent
- Japan’s Topix index closed 0.9 percent lower as the Fed decision and a threat from President Trump to “strongly” crack down on trade with China rattled investors.
- In Europe, the Stoxx 600 Index was trending lower, as traders awaited the monetary policy decision from the European Central Bank.
Notable Earnings Calls:
- Adobe Systems, Finisar, Jabil Cherokee, Bluestem Group and Fred’s
The World Cup of Soccer kicks off with tournament host Russia playing Saudi Arabia.
