Wall Street looks ahead to retail sales

0
156

Wall Street looked set to open narrowly lower on Friday, ahead of this week’s key U.S release—retail sales.

Some rebound is expected in August sales after July’s subdued reading, with underlying spending supported by the marked decline in gasoline prices.

In addition, Thursday’s Quarterly Services survey from the Commerce Department revealed an upturn in health care spending.

“Services spending momentum was clearly improving going into the third quarter,” said Bank of Tokyo-Mitsubishi’s Derek Halpenny in a research note.

“August should be solid.”

An upbeat retail sales read will help support stocks into next week’s important Federal Open Market Committee meeting, which is looming large as investors ponder when the Federal Reserve will opt to start raising interest rates.

“Global equities seem to be in a holding pattern as we head into next week’s FOMC meeting,” Stan Shamu, a market strategist at IG Markets said in a morning note.

Analysts at Capital Spreads said equity markets would continue to “stumble around in uncertainty” on Friday.

“It’s unlikely that traders will be looking to put on any large positions going into the weekend,” the brokerage firm said in a note.

This Friday also brings the preliminary reading of the University of Michigan’s consumer sentiment survey for September.

In the corporate space, Darden Restaurants is the only company of interest reporting earnings, which are due out before Wall Street opens.

The European Union implemented a new round of sanctions against Russia on Friday and the U.S. has indicated it will follow suit with similar measures. Europe’s new sanctions further restrict access to foreign capital for Russia’s largest state-controlled companies, including top energy firms. Leading Russian politicians were hit with foreign asset freezes and travel bans.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here