Stock Market News: Retail Data Helps Equities
The US stock market is on the rise this morning, thanks to some positive economic news. Retail sales data is in, and it looks like numbers are up for May.
This is, of course, giving the stock market a boost this morning. Consumer confidence is on the rise again, most likely because they have more money in their pockets from the economic stimulus checks they have been receiving. Or, as the retail sales data indicates, consumer confidence is rising as a result of the money that they are spending (rather than keeping in their pockets). But the question is this: How long can a stock market rally be sustained on the economic stimulus checks? And I want to know how much of those retail sales were made in the areas of food and gas.
Another boost to the stock market is in the form of lower oil prices. Oil prices have dipped a bit, also providing a measure of confidence. After all, when oil prices are lower, so are overhead costs for companies. This helps profits, which helps stock prices.
Finally, we can’t forget the shot in the arm Anheuser-Busch is giving to the stock market. Rumors of a takeover abound with regard to a foreign company acquiring the most American of brews. And the beer stock is rising.
So the stock market news is pretty good — for now. The real question is how long will the stock market rally last.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.
Tags: stock market, stock market news, investing blog, economic stimulus,
economy, investments, retail sales
June 13th, 2008 at 9:45 am
[…] retail sales data helped the stock market early on, and today’s consumer price index (CPI) data is doing the […]