Strong U.S. retail sales signal economic strength
In this week’s video update:
- April U.S. retail sales posts largest monthly gain in a year at 1.3 percent
- European earnings season and looming ‘Brexit’ vote keep eurozone markets flat
- Will next week’s economic reports in the U.S. influence the U.S. Federal Reserve’s (Fed) decision to raise rates in June?
On this week’s market update Chief Investment Strategist Erik Ristuben joins host Alexandra Davis to discuss the positive April U.S. retail sales number, which posted the largest monthly gain in a year at 1.3%, and its signal to the health of the U.S. economy, as employment and consumer spending continue to grow at a positive rate.
After weaker economic data out of Europe last week, Ristuben discusses a somewhat flat week in the European markets, noting that European earnings are coming in worse than expected, paired with the U.K.’s decision on whether or not they will leave the European Union in June (also referred to as the “Brexit”) will likely clarify the direction of the European economy in the near-term.
Concluding this week’s recap, Ristuben notes a number of economic indicators to roll out in the U.S. next week – including housing starts, Consumer Price Index (CPI), industrial production, Federal Open Market Committee (FOMC) minutes and jobless claims – and the close examination the Fed will take of the data, given the committee’s motivation to raise interest rates when possible.
Which U.S. economic report do you think will have the biggest impact next week?
- Housing starts
- Industrial production
- FOMC minutes
- Jobless claims