Retail Sales Fall Hard, Again

A report this morning from the Census Bureau showed that Retail Sales fell 0.7% in December against an expectation of no change. November’s plunge of 1.1% was revised to a plunge of 1.4%. Without Autos, December’s fall was 1.4% against an expected drop of just 0.2%. November’s fall of 0.9% was revised to a greater fall of 1.3%. The Retail Sales Control Group, without food, autos, gas stations, and building materials, fell by 1.9% versus a forecast of just a 0.2% dip. November’s dip of 0.5% was revised to a bigger dip of 1.1%. Negative news all around.

Also out from the Bureau of Labor Statistics, December’s Producer Price Index rose 0.3% with the year-over-year pace remaining at 0.8%. Core PPI, without food and energy, rose by 0.1% with the year-over-year rate falling one-tenth to 1.2%. And from the New York Fed, its Manufacturing Index fell to 3.5 from 4.9 against a forecast of an improvement to 6.

Treasury prices are slightly higher in early trading with the Ten-Year’s yield slipping slightly to 1.10% with the Long Bond at 1.85%. The Two-Year is unchanged at 14 basis points. Crude oil is off a bit at $53 while gold is little changed at $1,847. Equity indices are glowing a bit red as details of the incoming Administration’s $1.9T covid-relief plan are still being digested.