SPRING SEES MORE SHOPPING
Last week, the Commerce Department announced a 1.2% jump in retail sales for May, topping the 1.1% rise forecast by analysts polled by Briefing.com. Driving the improvement: a 3.7% leap in gas station sales. Purchases increased 2.1% at home improvement outlets, 2.0% at auto dealers and auto parts stores, 1.5% at clothing shops and 1.4% at online retailers. April retail sales were revised from flat to +0.2%, and that makes three straight months of gains.1
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WHOLESALE INFLATION INCREASES
Rising gasoline and egg prices influenced the 0.5% gain in the Producer Price Index for May - its largest monthly advance since fall 2012. The core PPI (which strips out energy and food items) rose just 0.1% following April's 0.2% retreat.2,3
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A NICE CONSUMER SENTIMENT SURPRISE
The University of Michigan's respected consumer sentiment index - which ended May at 90.7, its poorest reading since December - exceeded Wall Street expectations. Instead of a slight gain, the preliminary June edition of the index rose to 94.6.2
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MIXED WEEK FOR THE MARKET
As the closing bell sounded June 12, the three major U.S. stock indices were little changed from the previous week. Across five trading days, the S&P 500 gained a total of 0.06% to reach 2,094.11, the Dow rose 0.28% to 17,898.84 and the NASDAQ lost 0.34% to fall to 5,051.10. Crude prices rose 1.4% on the NYMEX during the week to a $59.96 Friday close; as for gold, it gained 1.0% in five days to settle at $1,179.20 Friday, snapping a three-week losing streak.3,4
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THIS WEEK:
Monday, Wall Street eyes a Federal Reserve report on May industrial output.On Tuesday, the Census Bureau issues a report on May housing starts and building permits, and earnings arrive from Adobe Systems, Bob Evans Farms and La-Z-Boy. The Fed issues its latest policy statement Wednesday, with investors also evaluating earnings reports from FedEx, Jabil Circuit, Oracle and Pier 1 Imports. May's Consumer Price Index comes out on Thursday, along with a new initial claims report, the Conference Board's latest set of leading economic indicators and earnings from Darden Restaurants, Kroger, Rite Aid, Smith & Wesson and Red Hat. CarMax and KB Home report earnings on Friday.
% CHANGE
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Y-T-D
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1-YR CHG
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5-YR AVG
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10-YR AVG
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DJIA
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+0.43
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+6.96
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+15.06
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+7.01
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NASDAQ
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+6.65
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+17.53
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+25.03
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+14.41
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S&P 500
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+1.71
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+8.50
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+18.37
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+7.44
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REAL YIELD
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6/12 RATE
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1 YR AGO
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5 YRS AGO
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10 YRS AGO
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10 YR TIPS
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0.55%
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0.39%
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1.29%
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1.76%
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Sources: wsj.com, bigcharts.com, treasury.gov - 6/12/155,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
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