Dow fell 62, decliners slightly ahead of advancers & NAZ went up 3. The MLP index dropped 2 to the 262s & the REIT index was fractionally higher in the 329s. Junk bond funds were mixed & Treasuries found a few more buyers today. Oil went up in the 61s & gold lost 3 to 1323.
AMJ (Alerian MLP Index tracking fund)
Stocks fluctuated as weak retail sales fanned concern that consumer spending is cooling, while Treasuries & the $ held steady on bets the Federal Reserve won't be forced to quicken the pace of rate hikes. The S&P 500 retreated from early gains as a drop in retail spending provided a 2nd data point, after yesterday's tepid inflation figures, to suggest unsteady growth in the US. The Stoxx Europe 600 reversed some of yesterday's 1% drop, with raw-material producers outperforming after factory output & investment growth in China unexpectedly accelerated. Benchmarks dropped across Asia earlier after the sudden firing of Sec Rex Tillerson. The € erased a decline spurred by Mario Draghi's comment that recent gains weren't all warranted by economic fundamentals. The Chinese data boosted most industrial metals, with copper heading for a 2-week high. That helped lift investor spirits after a day in which US political risks rocked markets from Europe to Asia. Oil retreated from session highs after OPEC raised its expectation for supply growth from the US & other producers for a 4th consecutive month. Meanwhile, Draghi said the €'s recent gains were due to more to external factors than euro-area economic growth & might weigh on inflation. The ECB pres also noted that adjustments to monetary policy will remain predictable as policy makers look for further evidence that inflation is moving in the right direction. Tillerson's ouster raised concerns of a new guard in the White House that may take a harder line on trade, advancing Pres Trump's agenda of imposing tariffs. To replace Tillerson, Trump nominated CIA director Mike Pompeo, an ex-congressman who has endorsed “pushing back against the Chinese threat.” The change comes as the administration considers tariffs on a broad range of Chinese imports, with Politico reporting one proposal is to take measures against more than $30B of goods a year.
US retail sales unexpectedly fell in Feb for a 3rd month, adding to signs that consumer spending will cool this qtr from the previous period's hot pace, according to Commerce Dept figures. Overall sales fell 0.1% (est up 0.3%) after 0.1% decrease in prior month (prev down 0.3%) & Dec figure revised to down 0.1%. Purchases at automobile dealers fell 0.9%, the 2nd straight month with such a reading. The retail-control group sales, which are used to calculate GDP & exclude food services, auto dealers, building materials stores & gasoline stations, rose 0.1% (est up 0.4%) following unchanged. 7 of 13 major retail categories showed declines. The results indicate consumer spending, the biggest part of the economy, is easing after rising at a 3.8% annualized pace Q4, the fastest in more than a year. Shoppers may be taking a breather following a run-up in borrowing in late 2017 & relatively tepid wage growth is limiting Americans' purchasing power. In addition to declines at auto dealers & gas stations, Feb figures reflected lower demand at furniture & home furnishing stores, electronics & appliance vendors, food & beverage sellers & health & personal care stores. General merchandise stores saw a 0.4% decline in receipts, the most since May, following a similar advance in Jan. On the brighter side, building-material stores reported a 1.9% sales gain in Feb, following a 1.7% decline.
Walmart (WMT), a Dow stock & Dividend Aristocrat, is expanding its same-day online grocery delivery service to more than 40% of US households (100 metro areas) by year-end as it tries to keep pace with the competition. The service is currently available in 6 markets. Tom Ward, VP of WMT digital operations, says the retail giant is powering the expansion of its same-day delivery service using its online grocery pickup program. That service uses personal shoppers to select items & then take them to shoppers' cars parked at the curb. So far, WMT offers curbside grocery pickup at 1200 stores & plans to accelerate the rollout to 2200 by year-end. It's currently using 18K personal shoppers. The company will continue to use of ride-hailing services to deliver the goods to shoppers' homes as it expands its service. Shoppers pay a flat fee of $9.95 but are required to spend at least $30 per order. WMT has also been testing a service using its US store workers to drop off general merchandise like toys & bedding to customers' homes after they finish work. The stock fell 34¢.
If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
The stock market is meandering again, not knowing what to do. Trade wars are a hot topic & that threat will be around for some time. Additionally, retail sales came in weak indicating Q1 data may not be impressive. Markets will continue to drift, waiting for meaningful news. And that will come with all that's going on in DC.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 60.95 | +0.24 | +0.4% |
| GC=F | Gold | 1,324.00 | -3.10 | -0.2% |
Stocks fluctuated as weak retail sales fanned concern that consumer spending is cooling, while Treasuries & the $ held steady on bets the Federal Reserve won't be forced to quicken the pace of rate hikes. The S&P 500 retreated from early gains as a drop in retail spending provided a 2nd data point, after yesterday's tepid inflation figures, to suggest unsteady growth in the US. The Stoxx Europe 600 reversed some of yesterday's 1% drop, with raw-material producers outperforming after factory output & investment growth in China unexpectedly accelerated. Benchmarks dropped across Asia earlier after the sudden firing of Sec Rex Tillerson. The € erased a decline spurred by Mario Draghi's comment that recent gains weren't all warranted by economic fundamentals. The Chinese data boosted most industrial metals, with copper heading for a 2-week high. That helped lift investor spirits after a day in which US political risks rocked markets from Europe to Asia. Oil retreated from session highs after OPEC raised its expectation for supply growth from the US & other producers for a 4th consecutive month. Meanwhile, Draghi said the €'s recent gains were due to more to external factors than euro-area economic growth & might weigh on inflation. The ECB pres also noted that adjustments to monetary policy will remain predictable as policy makers look for further evidence that inflation is moving in the right direction. Tillerson's ouster raised concerns of a new guard in the White House that may take a harder line on trade, advancing Pres Trump's agenda of imposing tariffs. To replace Tillerson, Trump nominated CIA director Mike Pompeo, an ex-congressman who has endorsed “pushing back against the Chinese threat.” The change comes as the administration considers tariffs on a broad range of Chinese imports, with Politico reporting one proposal is to take measures against more than $30B of goods a year.
Stocks Fluctuate, Dollar Steady on Retail Report: Markets Wrap
US retail sales unexpectedly fell in Feb for a 3rd month, adding to signs that consumer spending will cool this qtr from the previous period's hot pace, according to Commerce Dept figures. Overall sales fell 0.1% (est up 0.3%) after 0.1% decrease in prior month (prev down 0.3%) & Dec figure revised to down 0.1%. Purchases at automobile dealers fell 0.9%, the 2nd straight month with such a reading. The retail-control group sales, which are used to calculate GDP & exclude food services, auto dealers, building materials stores & gasoline stations, rose 0.1% (est up 0.4%) following unchanged. 7 of 13 major retail categories showed declines. The results indicate consumer spending, the biggest part of the economy, is easing after rising at a 3.8% annualized pace Q4, the fastest in more than a year. Shoppers may be taking a breather following a run-up in borrowing in late 2017 & relatively tepid wage growth is limiting Americans' purchasing power. In addition to declines at auto dealers & gas stations, Feb figures reflected lower demand at furniture & home furnishing stores, electronics & appliance vendors, food & beverage sellers & health & personal care stores. General merchandise stores saw a 0.4% decline in receipts, the most since May, following a similar advance in Jan. On the brighter side, building-material stores reported a 1.9% sales gain in Feb, following a 1.7% decline.
Walmart (WMT), a Dow stock & Dividend Aristocrat, is expanding its same-day online grocery delivery service to more than 40% of US households (100 metro areas) by year-end as it tries to keep pace with the competition. The service is currently available in 6 markets. Tom Ward, VP of WMT digital operations, says the retail giant is powering the expansion of its same-day delivery service using its online grocery pickup program. That service uses personal shoppers to select items & then take them to shoppers' cars parked at the curb. So far, WMT offers curbside grocery pickup at 1200 stores & plans to accelerate the rollout to 2200 by year-end. It's currently using 18K personal shoppers. The company will continue to use of ride-hailing services to deliver the goods to shoppers' homes as it expands its service. Shoppers pay a flat fee of $9.95 but are required to spend at least $30 per order. WMT has also been testing a service using its US store workers to drop off general merchandise like toys & bedding to customers' homes after they finish work. The stock fell 34¢.
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Walmart's online same-day grocery ready for prime-time
The stock market is meandering again, not knowing what to do. Trade wars are a hot topic & that threat will be around for some time. Additionally, retail sales came in weak indicating Q1 data may not be impressive. Markets will continue to drift, waiting for meaningful news. And that will come with all that's going on in DC.
Dow Jones Industrials
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