Shop Til You Drop? Retail Sales Beat Expectations, But Stocks Don't Care.
Shop 'til You Drop is an American game show that was on the air intermittently between 1991 and 2005.
Retail sales in the United States beat expectations in July, rising 0.8% month-over-month. This was the best growth rate in four months.
The strong retail sales data is a sign that consumer spending remains strong. However, the stock market did not react positively to the news. The S&P 500 fell about 1% in the first hour of trading, before trading sideways for the rest of the day.
There are a few reasons why the stock market did not react positively to the strong retail sales data. First, investors are concerned about rising inflation. Inflation is at a 40-year high, and it is putting pressure on consumer spending.
Second, investors are concerned about the Federal Reserve's plans to raise interest rates. The Fed is expected to raise rates in September, and this is likely to weigh on economic growth.
Third, investors are concerned about the ongoing trade war between the United States and China. The trade war is disrupting supply chains and causing uncertainty in the global economy.
Despite the weak stock market reaction, the strong retail sales data is a positive sign for the economy. Consumer spending is still strong, and this is helping to support economic growth. However, investors are concerned about the impact of rising inflation, interest rates, and the trade war on the economy.
In conclusion, retail sales beat expectations in July, but the stock market did not react positively to the news. Investors are concerned about rising inflation, interest rates, and the trade war. These concerns are likely to weigh on the stock market in the coming months.