Retail Sales Go Negative
Stocks saw some frankensteins out there and got scared. The market started up, fell way down, clawed its way back to positive territory, and fell off – closing 338 points down. Bonds corrected its interest rates from yesterday’s rise – falling back half way – just like the stocks – interesting – might be a correlation???
The Dollar, Oil, and gasoline more or less went sideways yesterday.
Gold had a nice run up yesterday – closing up $38/ounce.
In the news…..
Retail sales were off 2.8% in October. Anything negative is a catastrophe for the economy. As a comparison, retail sales fell in the November after September 11th World Trade Center terror attacks by 2.65% – remember how everyone stayed home at that time – I do. Well, it’s worse right now as a real measure – not subjective.
Cities are now asking the US Government for a handout. Three cities (Philadelphia, Phoenix and Atlanta) have asked for $50B in aid – in other words, a free taxpayer provided handout. There are 5 or 6 more cities waiting in the wings, ready to ask for their own handout if this first run for help works out.
Tonight’s Dinner Conversation…..
Should the US Government bail out cities – or counties – or states – just because they aren’t getting as much revenue as they did last year? Yes or no? And Why???
I think you all know the arguments so I won’t give you any hints this time.
Here are Yesterday’s numbers:
Dow Jones 30 Industrial – 8497 (down 338 points)
10 Year Treasury Bond – 3.75% (down 0.07%)
Euro – $1.2599
Gold – $743 (up $38)
Oil – $57.04 (down $1.20)
Gasoline – $1.24 (down $0.06)