MarketBites: Consumers Keep Spending, Stocks Rally
Portfolio Manager Commentary:
Stocks surged on Friday to end the week, after U.S. retail sales came in stronger than expected. Semiconductor holdings got a significant boost after global chip giant TSCM delivered a positive outlook for the industry. Meanwhile, Congress got one step closer to passing the $52 billion Chips Act in support of American chip manufacturing.
Retail purchases increased 1% in June, after May's 0.1% decline. The import price index for June also came in below expectation, providing some good news on the inflation front. Investors cheered the University of Michigan's Sentiment report that showed long-term inflation expectations have come down.
The White House expects that Saudi Arabia will boost oil production in the coming months, following a meeting between President Biden and Crown Prince Mohammed Bin Salman.
Elsewhere, Italian Prime Minister Mario Draghi signaled that he is indeed determined to resign as head of Italy next week. In China, the real estate market is starting to crack as citizens threaten to stop paying mortgages on apartments that haven't even been built yet.
Chart of the Day:
Here is something light for the weekend: This is a housing ad from a 1955 newspaper.