The US stock market has been on the rise lately, thanks to a better-than-expected retail sales report from the Commerce Department. The encouraging news sent stocks surging on Thursday, with the Dow Jones Industrial Average closing at its highest level since early February. The data showed that retail sales rose 1.3% in March, following a 2.7% decline in February and a 0.5% drop in January. This strong performance was driven by increased spending on durable goods such as cars and furniture, suggesting that consumers remain confident despite the pandemic’s lingering effects. In addition, housing starts and manufacturing output also rose last month, further boosting investor confidence.
US stocks rise after stronger-than-expected retail sales data
US stocks were on the rise on Thursday after data showed that retail sales rose more than expected in the month of July.
The Commerce Department reported that retail sales increased by 0.7 percent in July after edging up by a revised 0.3 percent in June. Economists had been expecting retail sales to come in unchanged compared to the 0.2 percent drop originally reported for the previous month.
The stronger than expected retail sales data came as a relief to investors, who were worried about the impact of tariffs on consumer spending. Retail sales account for a large portion of overall economic activity and are seen as a key indicator of consumer spending.
Despite the strong retail sales data, stock prices remained relatively volatile as trade concerns continue to weigh on investor sentiment. The Dow Jones Industrial Average was up about 90 points in mid-day trading, while the S&P 500 and Nasdaq Composite were both up by around 0.4 percent.
Dow Jones Industrial Average hits new record high
After months of anticipation, the Dow Jones Industrial Average finally reached a new record high on Wednesday. The index climbed above 27,000 for the first time ever, led by gains in shares of Boeing, Goldman Sachs and Apple.
The strong showing for the Dow came as retail sales data for the holiday season came in better than expected. Holiday spending rose at the fastest pace in six years, according to the National Retail Federation.
Investors are also betting that the U.S. economy will continue to grow at a solid pace in 2019 despite concerns about a potential slowdown in other parts of the world. The Federal Reserve is widely expected to raise interest rates again next month, which would be another positive sign for stocks.
S&P 500 and Nasdaq Composite also close at record highs
The S&P 500 and Nasdaq Composite both closed at record highs on Thursday, following better-than-expected retail sales data.
According to the Commerce Department, retail sales rose 0.6% in May, rebounding from a decline of 0.3% in April. This was higher than the 0.3% increase that economists were expecting.
Sales at auto dealerships were a big driver of the gain, rising 1.3%. Excluding autos, retail sales still rose a solid 0.5%.
The strong retail sales data indicates that consumers are still confident and spending despite concerns about the economy. This is good news for stocks, which have been on the rise since late March.
Retail sales rose 0.8% in January from the previous month
According to the latest data from the US Census Bureau, retail sales rose 0.8% in January from the previous month. This is higher than the expected 0.6% increase, and is a positive sign for the US economy.
The rise was driven by increases in sales at auto dealerships, furniture stores, and building material stores. These gains offset decreases in sales at grocery stores and department stores.
This data is encouraging news for stocks, which have been on the rise since the beginning of the year. The strong retail sales data adds to other recent positive economic data, including job growth and increased manufacturing activity.
Excluding automobiles and gasoline, retail sales rose 0.7%
Sales at US retailers rose more than expected in October, driven by strong gains in categories like building materials and electronics.
Excluding automobiles and gasoline, retail sales rose 0.7% last month, according to the Commerce Department. That was better than the 0.5% increase that economists had been expecting.
September’s retail sales figures were revised up to show a 0.3% gain instead of the previously reported 0.1% decline.
The stronger-than-expected retail sales data are a good sign for the economy and suggest that consumers are still spending despite higher taxes and gas prices. That’s helping to support stock prices today.
Economists had expected a 0.5% increase in retail sales
Retail sales in the United States unexpectedly rose in September, providing a boost to stocks as investors bet on a recovery in consumer spending.
Economists had expected a 0.5% increase in retail sales, but the data showed a 1.9% jump. The strong retail sales data came as a surprise to many analysts, who had been expecting a weak report given the recent hurricanes.
The stock market has been on a tear in recent months, with the Dow Jones Industrial Average hitting a series of record highs. The strong retail sales data added to investor optimism about the economy, and stocks responded accordingly.
Conclusion
The latest retail sales data indicates that the US economy is on a solid path of recovery and it appears that investors are optimistic about the future. Stocks rose across sectors, with technology stocks leading the rally due to their resilience in difficult times. As long as economic conditions remain strong, investors can expect to continue profiting from US equities. With this in mind, now may be a great time to consider diversifying your portfolio by adding more stocks or ETFs into your existing holdings.
