The Morning View: October 16, 2019

  • October 16, 2019

Senior Vice President / Portfolio Manager

Announced this morning, Retail Sales fell 0.3% in September, much lower than the 0.3% increase expected. The decrease was driven by building materials and auto sales. The Control Group, which excludes sales for food, autos, building materials and gas stations, was flat in September, also lower than forecasts. Overall, a weaker report than previous months, highlighting restraint in retail spending during the month. Uncertainty surrounding trade negotiations, “Brexit”, and political discord may have impacted spending decisions during the month. However, JP Morgan, one of the largest banks in the U.S., highlighted a strong consumer in yesterday’s earnings report. Given its sizeable impact on GDP, the direction of consumer behavior will need to be monitored closely in the months ahead. In all, bond yields are little changed following the report and equity futures are lower heading into the market open.

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