MARKET TALK: 2Q Consumer Spending Off To Good Start
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
8:37 (Dow Jones) Increase in total sales suggests autos actually contributed
to gain in retail sales. Non-auto retail sales up 0.7%, which itself is a
strong increase. The downward revision to March may take away some growth
from the 1Q, but the solid numbers for April give a robust start to consumer
spending in 2Q.
8:30 (Dow Jones) It's another one of those potentially important Friday's
for stocks. Vital readings coming on April prices at the wholesale level,
retail sales and, maybe the most important, a barometer of consumer
sentiment. The consumer-driven retail sales are obviously key, but don't
shortchange that PPI reading. Without question the Fed is fixated solely on
avoiding a recession now, but an increasing number of economists are talking
of the hangover that is likely to result later on this year and into next as
a result of the dramatic rate cuts we've already seen. If the core rate of
PPI is well above the 0.1% increase expected, it could be just a bit
worrisome. Notable story in Business Week has Merck (MRK) offering to buy
Schering-Plough (SGP) for $91 billion in stock. Novartis (NVS) gets FDA OK
for leukemia drug, and IBM sounds positive at analyst meeting Thursday
afternoon. Stock futures flat, as are Tsys. (TG)
(END) DOW JONES NEWS 05-11-01
08:38 AM
*** end of story ***
(DOW JONES) DJN: DJ MARKET TALK: 2Q Consumer Spending Off To Good Start
DJN: DJ MARKET TALK: 2Q Consumer Spending Off To Good Start
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
8:37 (Dow Jones) Increase in total sales suggests autos actually contributed
to gain in retail sales. Non-auto retail sales up 0.7%, which itself is a
strong increase. The downward revision to March may take away some growth
from the 1Q, but the solid numbers for April give a robust start to consumer
spending in 2Q.
8:30 (Dow Jones) It's another one of those potentially important Friday's
for stocks. Vital readings coming on April prices at the wholesale level,
retail sales and, maybe the most important, a barometer of consumer
sentiment. The consumer-driven retail sales are obviously key, but don't
shortchange that PPI reading. Without question the Fed is fixated solely on
avoiding a recession now, but an increasing number of economists are talking
of the hangover that is likely to result later on this year and into next as
a result of the dramatic rate cuts we've already seen. If the core rate of
PPI is well above the 0.1% increase expected, it could be just a bit
worrisome. Notable story in Business Week has Merck (MRK) offering to buy
Schering-Plough (SGP) for $91 billion in stock. Novartis (NVS) gets FDA OK
for leukemia drug, and IBM sounds positive at analyst meeting Thursday
afternoon. Stock futures flat, as are Tsys. (TG)
(END) DOW JONES NEWS 05-11-01
08:38 AM
*** end of story *** |
