The American consumer has been carrying this economy for months. Friday morning brought two reports suggesting the load is getting heavy. Stocks responded with a slow, unglamorous slide.
The Nasdaq Composite (NASDAQINDEX: ^IXIC) is down 0.44% as of 12:00 p.m. ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) has slipped 0.21%, and the S&P 500 (SNPINDEX: ^GSPC) is off 0.19%. All three hovered around the flatline for the first half hour, turned negative shortly after 10 a.m.
ET, and ground steadily lower until about 11:30. The Nasdaq broke away from the other two mid-morning and fell roughly twice as far. This Rare Signal Is Flashing Again.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Retail sales dropped 0.6% in July, showing the first decline in nine months and the biggest in 14.
Economists had forecast a 0.1% gain. Core retail sales, which most closely correspond to the consumer spending component of GDP, dropped 0.4% versus expectations of a 0.3% increase. Some of that is a technicality.
Amazon (NASDAQ: AMZN) moved Prime Day to June this year, which pulled sales out of July and knocked nonstore retailers down 2.2%. Many e-tailers followed Amazon's shift, keeping their own discount events close to the e-commerce titan's calendar. The less comfortable explanation is that this spring's generous tax refunds were already spent.
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