Retail Sales Rose 0.3% Last Month

The stock market is down again today, but not by much. Today could be our third straight loss this week. Once again, it’s the high beta stocks that are feeling the heat. Many of the low volatility stocks are doing just fine.

This morning we learned that for November, retail sales rose by 0.3%. That’s lower than the 1.8% increase we had in October. (That’s seasonally adjusted.) In the last year, retail sales are up 18%. Over the same time, consumer prices rose by 6.8%.

This is more of the trend of depressed, angry, disillusioned shoppers who are flooding the malls, gobbling up houses and madly bidding up stocks. I say this jokingly, but there’s some truth to it.

I love this bit from the WSJ:

Jill Grobowsky Bergus, co-owner of three Lockhart Smokehouse barbecue restaurants in the Dallas area, said that they have had to raise prices by 20% to 30% in recent months and have held back from further increases because they worry customers will blanch.

“We’re talking to our meat supplier like we’re day traders,” Ms. Grobowsky Bergus said. Beef prices are up 21% over the past year while pork is up 17%, according to government data. Spending at restaurants was up 1% in November over the previous month.

Shortages of materials and labor have also caused problems. Lockhart Smokehouse has raised pay to keep their employees and has had to contend with suppliers who don’t have enough delivery drivers. Even the 2-ounce plastic cups for barbecue sauce have been in short supply.

Homebuilder confidence remains very high. Today we learned that the index for this rose by one point to 84. Any number above 50 is positive.

The Fed’s policy statement is due out at 2 pm.

Posted by on December 15th, 2021 at 1:34 pm


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