The US economy powers on. Let’s look at the data received today.
Redbook sales prints another exceptionally strong week at 6.9%. Keep in mind this is NSA data and this is the first week of January, when we would normally see sales fall after the holiday surge. I expect retail sales to be blockbuster next week.
Next up is JOLTs, which beat expectations by 400k, and last month beat by 300k. Remember, this is November, not December so not after the election. I had an inkling this could happen and looked at 2016 in the weekly note.
Last but not least is ISM Services. Improved by 2 pts from last month, and beat expectations by nearly a point. Within the subindices:
-New orders and employment solid and match expectations.
-Huge beat in business activity 58.2 versus 54 expected.
-Perhaps most importantly, prices paid surged to 64.4 versus 57.5 consensus.
We were last at this level before SVB. This is what’s hurting stocks, which otherwise should take this as good news.
Great recap. You were spot on about EUR earlier today. I give thanks!