Another Poor Retail Sales Report

 

 

Retail Sales for May dropped .2%, marking the second consecutive month of declining sales. The April report had initially been reported as an increase, but was revised to also reflect a decline of .2%. The reports here in the US have not be...en good and points to more Fed action in the future. We will find out what is in the Fed's mind next week as they meet June 20th.

The retail sales report is a measure of the total receipts of retail stores from samples representing all sizes and kinds of business in retail trade throughout the nation. It is the most timely indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences.

Bernanke Hints On QE3

Initial Jobless Claims fall by 12K last week to 377K just above our prediction of 375K. Bernanke says the Fed is prepared to take action to protect the financial system, US economy, in event stresses escalate. Mr. Bernanke says the crisis in Europe poses significant risks to US financial system and the economy and must be monitored closely. Bernanke hints at QE3 but doesn't say it is imminent - Stocks cut some gains, Bonds moving higher. We have been predicting that the Fed will start looking at QE3 for some time. Dow and Bonds on the upside with Dow currently up 102 pts. and bonds up 28bps.