Market Overview

Retail Sales Preview: Will It Give The Fed Fuel To Raise Rates?

Related SPY
The Market In 5 Minutes: Auto Show Highlights, Bitcoin Tumbles, Northrop Vs. Lockheed
Barron's Roundtable: A Bright Outlook For Stocks This Year
The Fed's Tightening Will Be Countered By This Hidden Source Of Liquidity (Seeking Alpha)

The U.S. Commerce Department will release retail sales figures for July at 8:30 a.m. ET, with consensus estimates calling for a 0.5 percent gain, according to Bloomberg News. Economist estimates range from 0.2 percent to 1.0 percent.

The expected 0.5 percent increase in July will be a marked improvement over last month's drop in retail sales of 0.3 percent. The less volatile retail sales less autos and gas is also expected to show a solid gain of 0.4 percent, following June's weak reading of -0.2 percent.

Retail sales comprises nearly 50 percent of total consumer spending, according to Econoday. With consumer spending accounting for roughly two-thirds of GDP, Thursday's number will be likely be scrutinized more closely given expectations of a potential September interest rate hike by the Federal Reserve. The latest Fed Watch numbers based on 30-day Fed Funds futures data from the CME Group put the probability of a quarter point rate hike at 61.4 percent.

S&P 500 futures are showing small gains in front of the retail sales release, up 0.34 percent in pre-market trading.

Posted-In: News Previews Retail Sales Trading Ideas


Related Articles (SPY)

View Comments and Join the Discussion!