Retail Sales Come in a Little Light

The Census Bureau announced this morning that Retail Sales in October grew 0.3% disappointing analysts looking for 0.5%. September’s growth of 1.9% was revised to 1.6%. Without Autos, Sales grew by 0.2% versus an estimate of 0.6%. The prior month’s 1.5% was revised to 1.2%. Core Retail Sales, without food services, gas stations, autos, and building materials, only grew by 0.1% last month against a forecast of 0.5%. September’s 1.4% growth in “core” sales was revised to 0.9%. So, a disappointing October and a little less shiny September. Bonds are rallying somewhat on the news with the Ten-Year’s yield falling to 86 basis points with the Long Bond hovering just over 1.60%. The Two-Year is still around 17 basis points.

Also out this morning, the Bureau of Labor Statistics reported that its Import Price Index fell by 0.1% last month when it was expected to remain unchanged. Year-over-year, that measure fell to minus 1% as forecasters were only looking for minus 0.8%. Export Prices rose by 0.2% as expected as the year-over-year pace moved to minus 1.6% from minus 1.8%.

Equity indices, already in the red as vaccine euphoria is replaced by rising case counts, may not start their day off well. Crude oil has slipped a bit to just under $41 while gold is little changed at $1,889. A little later this morning, Industrial Production and Capacity Utilization for October will be reported.