The Dow Jones (DJIA) is set to open Tuesday flat following a retail sales update from the Census Bureau.
Claim 30% Off TipRanks
Forget margin or options. Here's how the pros trade QQQU.S. retail sales totaled $735 billion for December, unchanged from the prior month and missing the consensus estimate of 0.4% growth. Core retail sales, which exclude volatile gasoline and auto prices, fell by 0.1%, also missing the estimate of 0.4%.
Holiday Spending Miss Pressures GDP Outlook
The data comes as a disappointment, as December is usually a strong holiday spending month. With retail sales representing about one-third of gross domestic product (GDP), weak retail sales could pressure economic growth forecasts. GDP grew at an annualized rate of 4.4% during the third quarter, with the Atlanta Fed estimating 4.2% growth for the fourth quarter.
Previous retail sales data had remained resilient in light of a shaky labor market and the effects of the Trump administration’s tariffs. However, consumers pulled back into the new year.