Spending Swells – Economic Data and Retail Earnings 💰

Spending Swells – Economic Data and Retail Earnings

This past Wednesday morning, the Commerce Department confirmed a technically positive data measure that several investors were perversely dreading to hear: retail sales. For the month of October, retail sales were up 1.3% compared to the month of September, slightly over the forecasted 1.2%. Although seemingly positive, this sent markets down, as several investors care more about the Fed’s plan for interest rates in December. With increasing consumer spending numbers, this can potentially confirm the Fed’s next 75 basis point hike and show that they may not be willing to pivot just yet. However, Federal Reserve Governor Christopher Waller did express his willingness for a hike of half of a percentage point, but after seeing more data that can warrant such an action.

Nevertheless, these words did not stop some bullish investors from holding off on today’s trading day, even after Target’s earnings report. Target, the nation’s seventh-largest retailer, did miss earnings expectations with high costs, pointing to a decrease in sales due to high inflationary pressure. They also reported a weak fourth-quarter guidance even though they will be entering a usually high time of sales due to holiday spending. This negative news comes after other large retailers like Walmart, Lowe’s, and Home Depot beat earnings claiming inflation had not affected consumer spending. Nevertheless, before we head to the next interest rate decision on December 14th, investors still have earnings of retailers like Kohl’s, Macy’s, and Gap, as well as tomorrow’s jobless claims report and data on housing starts and building permits,

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio, or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.