Dow rally more than 650 points on positive data, financials
Retail sales rose 1.0 percent last month, the Commerce Department said, exceeding a Reuters poll forecast of 0.8 percent. Data for May was revised up to show sales fell 0.1 percent instead of the previously reported 0.3 percent. Retail sales increased 8.4 percent on a year-on-year basis and 18 percent above their pre-pandemic trend. While the retail sales data was laudable, economists were cautious about pointing out that a big reason for the gains was from a spike in gasoline prices. “Yes, consumers spend more, but they don’t take home the same amount of goods,” First Trust said in a note. “Adjusted for the consumer price index (CPI), retail sales fell 0.3 percent in June.” Separately, consumers reduced their inflation expectations in July, a fourth report from the University of Michigan showed. The yield on the US 10-year note fell 4 basis points to 2.92 percent as of 4:59 p.m. in New York. Two years it was at 3.12 percent. Bill Adams, chief economist for Comerica Bank, said the o