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Retail Sales Weak as Auto Sales Jump
Ouch. Retail Sales fared quite a bit worse than expected in July, as total sales dipped by 0.1%. That may not seem like a major decline, but analysts were expecting to see a 0.8% jump in the month, following a 0.8% gain in June. What happened?rnrnAs expected, the ‘cash-for-clunkers’ program helped boost auto sales in the month, but those gains weren’t enough to mask the soft underlying details of the report.
Retail Sales, Jobless Claims, Inventories, Bond Auction
Optimism is in the air. While analysts debate whether the US economy is on the brink of recovery or whether the recession has already ended, real GDP reports from France and Germany, just released, report that both economies were expanding in the second quarter.rnrn“This is further evidence that the worst for the global economy is behind us and sights are now set on recovery,†said Robert Kavcic from BMO Capital Markets. Each nation was expanding at just 0.3%, a minor increase that wasn’t enough to stop the Eurozone from contracting overall (-0.1%), but it’s the first piece of growth since
No Surprises in FOMC Statement. Status Quo Kept
Although we have dissected the policy statement alterations in great speculative detail, this FOMC statement was "as expected". The Fed confirmed that the Fed funds rate will be kept at an exceptionally low rate for an extended period of time, they validated the market's belief that stabilization had occurred and the worst case scenario had been avoided, yet they were sure to keep market participants from getting too excited about an economic recovery as many roadblocks lie ahead (weak labor market).
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