By Bill Hornbarger, Chief Investment OfficerPrint This Post
Three Things to Watch
- Big week for retail data. Retail sales for July are slated to be released on Wednesday and expected to be up 0.1%. Earnings releases will be dominated by retailers including Home Depot, Lowe’s, Target, Kohl’s and Footlocker, providing a good indicator of how the consumer is doing.
- The economic calendar also features a healthy dose of housing data including the homebuilders index, housing starts, and existing home sales. All are expected to show continued weakness in the housing market.
- The index of leading economic indicators will be released on Thursday and the consensus forecast is for -0.5%. That would be the fifth consecutive negative month, which has historically been associated with a recession.
Three Things to Know
- As of Friday’s close, the Dow Jones Industrial Average and the S&P 500 are 8.3% and 10.8%, respectively below their all-time highs. (Source: Bloomberg)
- In the three months ending June 30, sales at Applebee’s and IHOP, which are both owned by Dine Brands, grew about 6% to 8% among households earning over $75,000 per year, according to Dine CEO John Peyton. Both brands saw theirsales drop a few percentage points among households earning under $50,000 a year. (Source: CNN)
- The 1- and 2-year Treasury yields are the highest on the yield curve (last at 3.24%) and the curve itself is inverted between 1- and 30-years. (Source: Bloomberg)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.