Surprise! U.S. April retail sales smashed expectations, rising the most in 13 months both on a sequential and annual basis. The MoM change came in at +1.3% on expectations of +0.8% and up from March's shabby +0.3%. Core retail sales also beat expectations coming in at +0.8% vs. +0.5% expected.
The data continues to confuse market participants because on the one hand we have a slow down in consumer spending and a rise in the personal savings rate, and on the other we have this, retail sales surging to fresh 8-year highs.
However, since mid-2015, retail stocks such as Walmart, Sears, and Home Depot haven't bought into this, diverging notably from the "fundamentals".
The data continues to confuse market participants because on the one hand we have a slow down in consumer spending and a rise in the personal savings rate, and on the other we have this, retail sales surging to fresh 8-year highs.
However, since mid-2015, retail stocks such as Walmart, Sears, and Home Depot haven't bought into this, diverging notably from the "fundamentals".