?? Stocks Soar as Consumer Resilience Defies Recession Fears ??
William Corley
Author of Financial Fitness: The Journey from Wall Street to Badwater 135; Professional Money Manager with 1DB.com.
In a surprising twist, US stocks rallied on Thursday, with the S&P 500 leaping 1.5%, signaling renewed investor confidence. Defying recession concerns, July's retail sales figure jumped by an unexpected 1%, highlighting the resilience of consumer spending in the US economy.
The bell weather of retail, Walmart, impressed investors, leaping over 7% as it surpassed earnings and revenue estimates. The S&P 500 is 2.4% from its all time high.
This synchronous climb in retail sales and stock performance underscores a stronger economy. This pleasantry of summer could be paving the way for continued growth and perhaps, optimism. If consumer spending refuses to wane, and corporate earnings continue to shine, the outlook does remains bright as we advance further into the year.
So, who gets the credit. The current president who has been heavily investing in America and its constituents (https://www.whitehouse.gov/invest/ ). Or the former president who enacted the corporate tax cuts from 35% to 21% and lowered taxes on personal taxpayers (https://www.law.cornell.edu/wex/tax_cuts_and_jobs_act_of_2017_(tcja) .
The answer is both. An outstanding question, how would the economy be managing without both? And when will it be necessary to consider the implications of our nation's burgeoning indebtedness?
Hip hip hooray for the American consumer, who continues to carry 68% of the weight of the world on their shoulders.
For today's stock market participants, the heat of the summer appears to be adding some Kaching in the pocket.
IMPORTANT DISCLAIMER: The opinions made herein are for informational purposes and are not recommendations to any person to buy or sell any securities. The information is deemed to be reliable but its accuracy and completeness are not guaranteed. 1st Discount Brokerage does not accept any liability for the use of this letter.?Readers of this letter who buy or sell securities based on the information in this column are solely responsible for their actions.