Retail Sales Fall Again

The stock market is up again today. The S&P 500 briefly broke above 3,700. The market is not far from a new all-time high. The Dow came very close to a new high this morning. Yesterday, in fact, the Russell 2000 got to a new high.

This morning’s retail sales report showed a decline of 1.1% in November. This is probably due to the impact of new lockdown measures. Over the last year, retail sales are up 4.1%.

The second straight monthly decline in retail sales reported by the Commerce Department on Wednesday could nudge Congress to agree on another fiscal stimulus package. News of the weak start to the holiday shopping season came as Federal Reserve officials were wrapping up a two-day policy meeting.

The U.S. central bank is expected to keep interest rates near zero and deliver a playbook for what might prompt the Fed to pump more money into the economy.

Retail sales dropped 1.1% last month, with receipts declining almost across the board. Data for October was revised down to show sales slipping 0.1% instead of rising 0.3% as previously reported, adding a sting to the report.

October’s dip was the first since April, when stringent measures to control the first wave of coronavirus cases crippled the economy.

We’ll learn more this afternoon when the Fed releases its new policy statement. Don’t expect much in the way of action, but the Fed may lay out its plans regarding its bond-buying program.

Posted by on December 16th, 2020 at 12:30 pm


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