Tuesday Afternoon Cheat Sheet: 3 Stories That Moved Markets
Gains of more than 1 percent in each of the three major indexes made for a good Tuesday on Wall Street. The market managed to erase some, but not all, of the losses it suffered on Monday. At the close:
|DJIA: +1.08% to 13,756.80||S&P 500: +1.43% to 1,574.57||NASDAQ: +1.50% to 3,264.63|
|Gold: +$10.20 to $1,371.30 per ounce||Oil: +0.06% to $88.76 per barrel||U.S. 10-Year: +0.041 points to 1.722%|
Here are three stories that helped shape the market on Tuesday:
1) Can April Retail Sales Live Up To This Forecast? March served up very disappointing news for both the labor market and consumer spending; the Employment Situation compiled by the Bureau of Labor Statistics showed that the U.S. economy created a disappointing number of jobs last month — hitting a low for the recovery — while retail sales declined 0.4 percent in March, according the Commerce Department. Adding to that weighty economic load, the University of Michigan-Thomson Reuters consumer-sentiment gauge dropped to a preliminary April reading of 72.3 — the lowest result since July.
While ICSC has forecast that April sales will increase by 2 percent to three percent, from this week’s look at the data, it seems that economic conditions could not change the current downward trend in retail sales as of yet, posing a concern for United States gross domestic product growth… (Read more.)
2) Housing Starts Finally Recapture 1 Million-Unit Pace in March: Housing starts improved in March, as the market for new homes continued its growth momentum from 2012. However, the strength was seen in multi-family starts, and new building permits declined to miss estimates.
Builders broke ground on houses at a seasonally adjusted annual rate of 1.04 million units last month, representing a 7.0 percent increase above the revised February estimate of 968,000 units, according to the Commerce Department. Last month’s rate was 46.7 percent above the March 2012 rate of 706,000 units… (Read more.)
3) Will U.S. Industrial Production Lead Economic Growth? Industrial production rose 0.4 percent month over month in March, according to data released by the Federal Reserve on Tuesday. This figure compares against the 1.1 percent increase reported in February, and it was slightly above consensus estimates for a 0.2 percent increase.
The Federal Reserve’s industrial production index is broken down into three major industry groups. The index and all of its components are pegged to a 2007 level of 100. The most-watched segment is manufacturing, which declined 0.1 percent last month to a level of 95.7. Significantly, the output of motor vehicle parts increased. Total vehicle assemblies rose 3.4 percent to an annualized rate of 11.05 million… (Read more.)