Don’s Notebook June 14, 2018

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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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Dr. Don Pratl is Director of Trader Development and Education for TradeStation. He joined TradeStation in 2016 after holding similar roles with other online brokerages. Don’s long career in the financial services industry reflects expertise in administering trading and investment strategy programs for retail investors as well as financial services professionals. Since the 1980s, he has held various positions in areas including CBOE trading floor order execution, marketing, sales, personnel management, training and customer service. Don holds series 3, 4, 7 and 63 FINRA licenses, earned his Ph.D. in Organization and Management, and his M.A. and B.A. in Political Science. He has been an occasional adjunct college instructor since 2004 at a range of institutions, teaching undergraduate, graduate and doctoral students using in-class and online formats.