Add another confusing data point to the mix: U.S. retail sales rose 0.8% in July, well ahead of analysts’ expectations for a 0.2% gain. The news is sending futures higher, but it could leave members of the FOMC even more befuddled as they try to determine whether the U.S. economy is headed for a recession or is on the rebound. Some observers were skeptical that the data points to a sustainable rebound for retailers.
“While this breaks a trend of falling sales in the preceding three months, it doesn�t necessarily signal a turning point,” wrote Jim Baird, chief investment strategist for Plante Moran Financial Advisors. “Certainly, the multi-month trend still suggests a cautious pace of spending.”
July producer prices also rose 0.3%, versus expectations for 0.2% growth. A Bank of America survey of investor sentiment also showed that investors are felling more confidence; five straight weeks of gains by the major indexes will do that.
European stocks are trading higher following the release of better than expected GDP numbers out of France and Germany.
Dow futures rose 37 points; S&P 500 futures rose 4.2 points.
Home Depot (HD) rose 2.2% after posting second quarter EPS that beat expectations, although revenue was light. The company also saw margins expand.
TJX (TJX) beat earnings expectations and raised its guidance, but shares were down 0.3% shortly after the report was released.
Estee Lauder (EL) rose 6.1% beating earnings and revenue expectations on wider margins, but the company issued disappointing 2013 guidance.
Saks (SKS) shares were flat after the company reported a narrower-than-expected loss on rising sales.
Pfizer (PFE) rose 0.5% after the company said late on Monday that it will pay $250 million for exclusive global rights to an over-the-counter version of AstraZeneca’s (AZN) heartburn drug Nexium. To reflect the deal, Pfizer cut its full-year profit forecast while AstraZeneca raised its outlook.
Groupon (GRPN) plunged 20% after missing revenue expectations and issuing in-line revenue guidance.
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