Retail Sales Gain Amid the Gloom
Retail sales were up in July by the most they’ve been in four months, a sign that consumers in general remain confident despite lagging employment, according to the Commerce Department.
The positive news gave investors on Wall Street a boost in confidence too, helping push the stock market to strong early gains on Friday.
But it is still much too soon to celebrate the economy, especially with officials at the Federal Reserve voicing concern that household spending has “flattened out,” something that has never happened outside a recession. –BF
WAIT, BEFORE YOU GO…
The gain in spending is “pretty relieving,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. “The upward revisions suggest that the trajectory of consumer spending heading into the third quarter wasn’t as bad as previously thought.”
Stock-index futures extended earlier gains after the report. The contract on the Standard & Poor’s 500 Index rose 0.8 percent to 1,178 at 8:42 a.m. in New York. Treasury securities also climbed, sending the yield on the benchmark 10-year note down to 2.29 percent from 2.34 percent late [Thursday].
If you're reading this, you probably already know that non-profit, independent journalism is under threat worldwide. Independent news sites are overshadowed by larger heavily funded mainstream media that inundate us with hype and noise that barely scratch the surface. We believe that our readers deserve to know the full story. Truthdig writers bravely dig beneath the headlines to give you thought-provoking, investigative reporting and analysis that tells you what’s really happening and who’s rolling up their sleeves to do something about it.
Like you, we believe a well-informed public that doesn’t have blind faith in the status quo can help change the world. Your contribution of as little as $5 monthly or $35 annually will make you a groundbreaking member and lays the foundation of our work.