My top 10 things to watch Thursday, Aug. 15
1. Stocks were headed for a higher open Thursday after a batch of better-than-expected economic data boosted confidence in the health of the U.S. economy. Not long ago recession fears gripped the market, and there was a growing sense the Fed would need to cut interest rates by a half-percentage point at its September meeting. That’s calmed down, with traders pricing in a nearly 75% odds of a traditional quarter-point reduction.
2. Retail sales in July rose 1% on a seasonally adjusted basis, well ahead of the 0.3% rise expected by economists polled by Dow Jones. Excluding auto-related purchases, sales were up 0.4% versus the 0.1% estimate. The second positive economic release: Initial jobless claims for the week ended Aug. 10 were 227,000, below the estimate of 235,000. After the July employment report fueled recession concerns, we’ve now seen back-to-back weeks of lower-than-expected initial claims.
3. In a further show of a stable consumer, Walmart beat on quarterly earnings and revenue. The Dow stock soared nearly 8% on the release. Strong e-commerce. Lifts full-year guidance, though a bit more cautious about the second half of the year.
