On Monday several economic reports were released in the United States that surprised economists. Retail sales rose during the month of April and pointed to the growing strength of the economy. After this positive news several investors raised their estimates for Q2 growth. Both JPMorgan (JPM) and Goldman Sachs (GS) revised their forecasts to about a 2% annual rate. Oil prices dropped to the lowest in over a week on the recent economic data as well as the strengthening US dollar. Because of a late report on Friday about the Fed’s plans to scale back its bond purchasing program trading was a little choppy on Monday. Alcoa Inc. (AA) was the biggest loser for the Dow and fell 2%. Also today Monsanto (MON) won their case on genetically altered soybeans but did not see a major change in stock.
Word on the Street
- US retail sales rise in April due to lower gas prices and consumer resiliency.
- Chinese factory activity is higher but continues to underwhelm analysts.
- Energy stocks falter on Monday; coal miners like Consol Energy (CNX) among the worst hit.
- Activision Blizzard (ATVI) Slumps on Bleak World of Warcraft Declines.