Morning Market Roundup: Retailers Post Aug. Gains, Futures Down, Unemployment Still Lousy
- Posted on August 30, 2012 at 9:57am by
Becket Adams
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Here’s what’s important in the business world this morning:
Retailers: Americans kept spending in August despite their escalating fears about the slow economic recovery and surging gas prices.
A range of retailers from discounter Target to club-operator Costco on Thursday reported August sales that beat Wall Street estimates. The results seem to show that what Americans say and do are two different things: The strong sales reports come two days after a private research firm said consumer confidence in August fell to its lowest level since November 2011.
A small group of merchants representing roughly 13 percent of the $2.4 trillion U.S. retail industry report monthly revenue at stores open at least a year, a key measure since it excludes results from locations that open and close during the year. Some of the biggest retailers like Wal-Mart and Home Depot do not report monthly sales, but the figures still are closely watched because they offer a snapshot of consumer spending, which accounts for more than 70 percent of economic activity.
August’s results are important because they offer insight into the back-to-school season — the second most important selling period behind the winter holidays — which runs from mid-July through mid-September. Retailers and economists often use the results from back-to-school as a litmus test of how shoppers will behave during the biggest shopping period of the year in November and December.
Unemployment: The number of Americans seeking unemployment benefits went up last week at a seasonally adjusted 374,000. The Labor Department said Thursday that the four-week moving average, a less volatile measure, increased to 370,250.
Applications are a measure of the pace of layoffs. When they fall consistently below 375,000, it generally suggests that hiring is strong enough to lower the unemployment rate.
Unemployment applications have risen slightly over the past three weeks. Last week’s number was revised upward to 374,000 from the 372,000 that was reported initially. That was its second straight increase.
Still, applications are lower than they were six weeks ago.
Futures: Stock futures sank Thursday due the latest economic data on the job market.
Dow Jones industrial futures fell 43 points to 13,041. The broader S&P futures gave up 5.5 points to 1,401.70 and Nasdaq futures lost 10 points to 2,771.25.
The number of Americans seeking unemployment benefits went up last week at a seasonally adjusted 374,000, according to the Labor Department. The four-week moving average, a less volatile measure, increased to 370,250.
The Associated Press contributed to this report.
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Sirfoldallot
Posted on August 30, 2012 at 11:52amIf Ben fires up the QE-4 he needs 2 be arrested.
Report Post »trotula
Posted on August 30, 2012 at 12:26pmAin’t it the truth…
Report Post »contkmi
Posted on August 30, 2012 at 11:26amOh, look. Unemployment numbers were revised upward. Again.
Can‘t believe that the liar in chief thinks we won’t notice.
Report Post »EqualJustice
Posted on August 30, 2012 at 10:38amSome of the retail sales increases are probably from consumers like me. I just can’t put off buying a new washing machine any longer, even though it’s not in our budget. There are a few other things we MUST replace, even though we will have to add one more CC payment to our monthly bills. Also I think some of Obama’s “stimulus” money is being pumped into the economy all at once. I just saw a new ad for windows, doors and sliders with “GREEN Government incentive discounts.”
Report Post »doomytram
Posted on August 30, 2012 at 10:27amIs the Jobs Council out there campaigning for Obozo. 4 more years, 4 more years, 4 more years of 400,000 + new unemployment caims. The Obozo administration is about suing states, not working on job creation, and big government. It’s amazing how incompetent the democrat clown team has been.
Report Post »Snowleopard {gallery of cat folks}
Posted on August 30, 2012 at 10:04amOkay a question for the Blazers; I have heard that the next round of Quantitative easing may be unleashed and announced this Friday; anyone else sense that the administration is not only desperate but setting up a final economic scorched earth for when Obama falls?
Report Post »Sirfoldallot
Posted on August 30, 2012 at 10:16amYup, time 2 stand up & stop this treason’s act & let VP take over as they all go. R & R
Report Post »SIGNOFTHETIMES
Posted on August 30, 2012 at 10:47amYup, if he is defeated, assuming we actually have an election, he will have a lame duck last chance to cripple the America he hates.
Report Post »Sirfoldallot
Posted on August 30, 2012 at 10:03amSchool + every thing after 4 yrs is wearing down,+ summer gen., duh. Employment ? How about distruction of this great nation.
Report Post »Snowleopard {gallery of cat folks}
Posted on August 30, 2012 at 10:06amWe may be at the start of Obamas economic scorched earth for his post November fall; the debt battle is coming up shortly, the quantitive easing four may be coming shortly if news is accurate, and who knows what else he is preparing to take down the nation in a lame duck session.
Report Post »JRook
Posted on August 30, 2012 at 10:10amCan’t wait to see how Becket and the bunch report this stuff if Romney and Ryan win. I’m sure we will see the journalistic integrity that reflects a commitment to the truth, strong character and strong faith.
Report Post »EqualJustice
Posted on August 30, 2012 at 10:57amThere’s no “IF” about it. The reports will be GLOWING because these two actually understand how finances work! Expect positive results. **ROMNEY/RYAN 2012**
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