Stocks up again. Stocks opened higher in the US, after gaining the past three days, as the global rally continued. After a news-heavy day yesterday, headlines are quieter today, as investors continue to digest Tuesday’s historically strong retail sales data, the Federal Reserve’s expanded corporate bond buying, and the proposed $1 trillion infrastructure plan.
Retail sales surprised big to the upside. Economic data continues to improve as states reopen their economies. May retail sales grew 17.7% month over month, the largest monthly gain since data began in 1992 and beating Bloomberg consensus of 8.4%. This carries forward the momentum from the May nonfarm payrolls beat and suggests consumers are regaining their footing faster than many had anticipated. However, it may be too early to declare victory as a record decline in April provided a low base for growth, May sales were still 6% below year-ago levels, and several industries still have a lot of ground to make up to return to pre-pandemic levels. Learn more today on the LPL Research blog.
COVID-19 news. On Tuesday, new US daily cases rose 1.12%, up from 0.92% a week ago as cases continue to rise in the South. Florida reported record-high new daily cases, and Texas hospitalizations hit a new high. Beijing closed schools and canceled flights to contain its latest outbreak. Brazil reported record-high daily cases of nearly 35,000 (COVID-19 Tracking Project).
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