Post by Daniel on Jan 15, 2016 19:00:20 GMT -5
Dow plunges 391, retail sales lowest since 2009
'There isn't anything encouraging in this report'
Douglas Ernst
U.S. retail spending in December hit lows not seen since 2009. Friday’s report sent the Dow Jones industrial average plunging more than 450 points by midday and closing the day down 391 points, a 2.39 percent drop.
Eight years of Quantitative Easing by the Federal Reserve has done little to spur consumers into action. Instead, they appear to be putting extra cash into savings. Purchases rose 2.1 percent in 2015, the smallest growth in seven years.
“The consumers aren’t spending. All these predictions, everyone keeps saying, ‘Oh, wait. They’re going to this, they’re going to do that. They’re not. The only areas that were up every year were sporting goods, music and books,” said Bloomberg News‘ Shannon Pettypiece on Friday.
Thomas Simons, a money-market economist at Jefferies Group LLC in New York, agreed.
“There isn’t anything encouraging in this report. It’s very disappointing. The labor market is in good shape, which suggests the outlook is probably better than this,” Simons said.
The retail sales report showed six of 13 major categories declined in demand in December from the prior month, Bloomberg reported. A 1 percent slump at general merchandise stores was the largest since February.
The report came in conjunction with news that Walmart, the world’s largest retailer, will close 269 stores beginning in February.
“Actively managing our portfolio of assets is essential to maintaining a healthy business,” Walmart CEO Doug McMillon said in a statement. “Closing stores is never an easy decision. But it is necessary to keep the company strong and positioned for the future.”
Walmart earnings for the fiscal year will be down as much as 12 percent, the Associated Press reported Friday. The Bentonville, Arkansas, said 154 locations will be in the U.S.
continue reading
www.wnd.com/2016/01/dow-plunges-450-retail-sales-lowest-since-2009/
'There isn't anything encouraging in this report'
Douglas Ernst
U.S. retail spending in December hit lows not seen since 2009. Friday’s report sent the Dow Jones industrial average plunging more than 450 points by midday and closing the day down 391 points, a 2.39 percent drop.
Eight years of Quantitative Easing by the Federal Reserve has done little to spur consumers into action. Instead, they appear to be putting extra cash into savings. Purchases rose 2.1 percent in 2015, the smallest growth in seven years.
“The consumers aren’t spending. All these predictions, everyone keeps saying, ‘Oh, wait. They’re going to this, they’re going to do that. They’re not. The only areas that were up every year were sporting goods, music and books,” said Bloomberg News‘ Shannon Pettypiece on Friday.
Thomas Simons, a money-market economist at Jefferies Group LLC in New York, agreed.
“There isn’t anything encouraging in this report. It’s very disappointing. The labor market is in good shape, which suggests the outlook is probably better than this,” Simons said.
The retail sales report showed six of 13 major categories declined in demand in December from the prior month, Bloomberg reported. A 1 percent slump at general merchandise stores was the largest since February.
The report came in conjunction with news that Walmart, the world’s largest retailer, will close 269 stores beginning in February.
“Actively managing our portfolio of assets is essential to maintaining a healthy business,” Walmart CEO Doug McMillon said in a statement. “Closing stores is never an easy decision. But it is necessary to keep the company strong and positioned for the future.”
Walmart earnings for the fiscal year will be down as much as 12 percent, the Associated Press reported Friday. The Bentonville, Arkansas, said 154 locations will be in the U.S.
continue reading
www.wnd.com/2016/01/dow-plunges-450-retail-sales-lowest-since-2009/
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