Houston, TX – (StockNewsDesk) – 11/14/2014 — Major indices of the US marketed, S&P 500 and the Down Jones are mostly flat after several economic data were reported. The Dow Jones had closed on a day high after the retail giant, Walmart showed optimism in its earnings numbers. Growth in core retail sales for the US came in marginally higher at 0.3%. This reading, however, is better than the Street’s expectations of 0.2%. Few economic indicators negative as well. Readings like Michigan Consumer Expectations, Export Price Index and Import Price index came in below than expectations. However, index like Core Retail sales data and Michigan Consumer Sentiment data impressed investors.
The US Consumer Sentiment for the month of November reported numbers well above expectations at 89.4, at seven-year high. Analysts expected a reading of 87.5. This is figure is also above earlier year’s reading of 86.9. Gauge measuring economic conditions bettered the expectation of 98.8. The reading came in 103.0 compared to earlier period’s figure of 98.3. Gauge measuring consumer expectations increased to 80.6 compared to 79.6. Analysts had forecasted a reading of 80.2.
People are expecting an inflation of 2.6% compared to analysts’ forecast of 2.9%. A five-year outlook of the nation’s inflation figure was also reported at 2.6%. This is the second-lowest reading after September’s 2002 figures of 2.5%.
Economy Positive on Retail
Positive retail sales figures came just a day after the largest retailer in the US posted profits. The US core retail sales grew by 0.3% above estimates of 0.2%, while the retail sales jumped by 0.5% in October. The earlier month had reported weak numbers because of the fluctuating prices of gasoline, autos, food services and building materials. In the retail arena, clothes and sporting goods saw significant growth. Retail sales of clothes increased 0.5%, while retail sales in sporting goods saw a growth of 1.2%.
Crude Oil Boosts Import Price Index, Spoiler for Retail
Fall in crude oil prices by 1.5% stopped retail sales figure to increase further. The increase in retail sales is important, especially when it accounts for nearly 30% of the US economy. Experts believe the rise in retail sales at this pace will leverage the US growth above 3% in the next quarter. Fall in crude oil prices is also primarily responsible for the decrease in import prices. Decline in crude oil prices made foreign goods cheaper for US citizens as a result the import prices declined nearly 1.5%. Moreover, the value of the US Dollar has increased nearly 10% in anticipation that the Federal Reserve will make; the much talked about, interest rate hikes.