Announced this morning, Retail Sales for October increased 1.7%, higher than expected and higher than the previous month. Non-store retailers, Gasoline Stations, and Electronics & Appliance stores were strong during the month, while Health & Personal stores were weak. Food Services & Drinking places were again flat in the month. The Control Group, which is a closer measure of the inputs for GDP that excludes sales for food, autos, building materials, and gas stations, increased 1.6% in October, also higher than expected. Meanwhile, Wal-Mart announced results with comparable sales increasing 9.2%; and Home Depot’s announced results with same-store sales growing 6.1%, amidst persisting demand for home improvement. Overall, decent retail sales figures even when considering inflationary pressures, with consumers purchasing goods and fuel throughout the month. With strength in electronics, it suggests some holiday spending may have been pulled forward, possibly due to concerns about availability amidst supply chain issues. Positive comparable sales figures from large retail firms reinforce the results, even with waning consumer sentiment figures. In all, the 10-year US treasury yield ticks higher and equity futures are mixed as we head into the market open.
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