The U.S. consumer will be in focus in the holiday-shortened week ahead with retail sales and bank earnings on deck, as stocks digest this week’s slightly hotter inflation print and teeter near record highs. Stocks are headed for their 10th winning week in 11 even after the December consumer inflation report came in stronger than expected, as tech shares surged. The tech-heavy Nasdaq Composite is on pace for its best week since November, last up by more than 3%. The S & P 500 also climbed back to within striking distance of its record closing high that was reached in January 2022. The broad market index is up 1.7% for the week, and the Dow Jones Industrial Average was on pace for a slight one-week gain. Next week will be lighter in terms of economic data, but stocks could be volatile as Wall Street gets further insight into the state of the American consumer. One thing that can kind of delay recession, if not cancel delayed recession, is the strength of consumer spending. … And I think retail sales will give us a glimpse of the willingness and ability of Americans to spend. chief U.S. equity strategist at BCA Research Irene Tunkel Retail sales, bank earnings Retail sales data for December are slated for release Wednesday. Economists polled by FactSet expect an increase of 0.2% for the month, representing a slight cooling from the 0.3% increase in November. Market bears calling for a recession argue that spending by U.S. consumers — who have thus far remained resilient in the face of rising inflation — will unravel soon after their savings deplete. These investors say that earnings growth is unlikely to accelerate this year if the economy is slowing. Irene Tunkel, chief U.S. equity strategist at BCA Research, expects retail sales data to show how consumers — and by extension, the economy — is continuing to hold up. “One thing that can kind of delay recession, if not cancel delayed recession, is the strength of consumer spending,” Tunkel said. “And I…
2024-01-12 13:38:00
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