US retail sales saw its biggest monthly increase since December 2016 up 0.6% in July and revised upward to 0.3% for June adding more ballast to signs of a resilient economy and helping to lift the dollar. However, a mixed bag of earnings announcements kept US stocks listless.
- Indexes trim gains in mixed trading
- US retail sales surge 0.6%
The figure released by the US Commerce Department was better than expected as economists forecasted an increase of 0.4%. Data showed total sales in retail and food jumped 4.2% from July 2016. Total combined US retail sales was $478bn for the month. Retail trade sales saw a 0.6% monthly increase.
The data helped to support the dollar along with fading geopolitical concerns as North Korea said it would not attack Guam. The dollar rose 1% against the Japanese yen and 0.2% against the Swiss franc. Stocks remained mostly flat in mixed trading today. Dow edged up +0.02%. The S&P 500 closed down -0.05% and Nasdaq fell -0.11%.
- Dow 21,998 +0.02%
- S&P 500 2,464 -0.05%
- Nasdaq 6,333 -0.11%
- Russell 2000 1,383 -0.79%
- NYSE Composite 11,843 -0.11%
- Gold 1,278 -0.94%
- Oil WTI $47 +0.11%
- 10-Year Treasury Yield 2.27% +0.04%
Advanced Auto Parts earnings miss makes a dent in share price
In other stock market news, retailers took a hit today as a number issued Advanced Auto Parts shed value in today's trading plunging -20% after it missed Q2 earnings expectations and changed guidance.
It reported a disappointing earnings per share of $1.58 which was well under $1.65 per share forecast by analysts. Sales of $2.2bn were in line with expectations while beating same-store forecasts for the second quarter staying flat against an expected decline of -0.2%.
The automotive retailer also altered its guidance for the year announcing a comparable-store sales decline of between 1% and 3% expectations were for 0.5%.
Dick's Sporting Goods fall as gun sales decline across the US
Retailer Dick's Sporting Goods, which sells a wide range of sports gear including hunting lowered its earnings guidance by 17% for the year and its share price tumble -23%. It's stock has almost halved (-49%) year to date.
Same store sales increased 0.1% below company's forecast of between 2% and 3%. The company blamed a slump in hunting sales and sporting apparel among other factors and painted a dismal tableau for the near future.
The sporting goods market place has become more competitive from other specialty retailers like Foot Locker (-4.44%) and Under Armour (-2.63%). Revenue was 96 cents per share, compared to the Company's expectations of $1.02 to$1.07 per share. Net sales increased 9.6% to $2.2bn.
In a statement, Edward Stack, chairman and chief executive officer, said: "We continued to capture market share and generated strong results in eCommerce, footwear and golf, although sales were pressured by weakness in hunting, licensed and athletic apparel."