Don’s Notebook June 14, 2018


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.

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