Morning Report: Retail Sales disappoint 11/13/15

Stocks are lower this morning after some disappointing data and an earnings miss out of Cisco Systems. Bonds and MBS are up small.

Retail Sales rose 0.1% in October, missing estimates. The control group which strips out autos, gas and building supplies rose 0.2%, which was again below expectations. Retail sales are getting tougher to measure as more and more shopping goes on line. Many of the small online shops do not report their sales data to the government, so actual retail sales data is hard to come by.

The Producer Price Index fell 0.4% in October, which was well below expectations again. Ex-food and energy, the index was up 0.1%.

The University of Michigan Consumer Sentiment Survey increased to 93.1 from 90.

Low energy prices are a big driver of this disinflationary environment. They aren’t going away as the International Energy Association says we have 3 billion barrels in storage, which is a record. And soon we will have Iran adding to the supply.

The third quarter was the best in nearly a decade, according to the NAR. Home prices increased in 87% of all MSAs. Existing home sales are up 8.3% YOY and prices are up 5.4%. Inventory remains tight.

Citing market conditions, non-bank lender Loan Depot is postponing its IPO.

%d bloggers like this: