Friends
Stocks moved lower again today despite or partially because of a way hotter than expected retail sales number. The consumer appears to still be in buy mode which is more than I can say for market participants. We have mentioned that so far in August stocks have run into a much more difficult set up. Share prices had moved up and valuations had become rich once again.
As for today, by the close the Dow Jones Industrial Average was down 361 points to finish the day at 34,946. The S&P 500 was down 51 points to close at 4,437. The Nasdaq Composite Index was down 157 points to close at 13,631. Gold was down $9 to trade at $1,934 per ounce, while oil was down $1.55 to trade at $80.96 per barrel WTI.
As for retailers themselves, today’s report from Home Depot was fine. The company warns though that they expect things to slow a bit over the coming months. In the meantime, bond yields continue to drift higher on the longer end and that is not what the bulls had in mind when they bid-up share prices in the first half of the year. Government funding needs and an economy that continues to hold firm are not giving any comfort to bond bulls these days. Anyway, let’s continue to monitor what some of the larger retailers have to say this week. Stay tuned.
Have a nice evening everyone.
