Stocks Rise After Retail Sales Jump
A report from the Commerce Department showed a 0.8 percent sales growth, while another report showed U.S. producer prices increased in July "at the fastest pace in five months even as energy prices fell." Retail sales growth is calculated with the exclusion of auto sales, building materials and gas.
In light of the report, stocks saw a boost, with Standard & Poor's 500 Index rising 0.1 percent to 1,405.99, which could hint at consumer optimism. The growth contrasts with a disappointing second quarter, where economic growth dropped from a 2 percent pace to 1.5 percent annually. However, despite the boost, economists still warn that many consumers remain cautious in light of June's stalled business sales and the euro zone's economic crisis.
If the economy fails to sustain this type of growth, the Fed is prepared to step in and pump new stimulus to help boost a more permanent growth and reduce joblessness.
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