Overnight the markets got more shots across the bow which warn of additional problems to the economy. The Redbook Retail data was released for the weak ending December 1st. It shows the sales growth has indeed pulled back and was only 2.2% when compared to the same time last year. This would confirm the expectations that retail sales are going to be hurting this year, especially the holiday shopping season. The data also shows that the all important ‘black Friday’ shopping weekend growth was only 0.3% (November sales growth).
For those of our readers that are invested in alternative energy stock, such as solar companies. We would caution you and perhaps you would want to consider taking any profits off of the table. It is being reported that President Bush may veto the energy bill, which includes tax benefits for the alternative energy sector. A veto of the bill would be very negative for the alternative energy sector.
Multiple downgrades overnight on the financial sector have added to the pre market deterioration of the futures.
The Bank of Canada has cut their interest rate by 25 basis points, this cut was a surprise to the market, and so far the impact to our markets are mixed.
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- Stock Market Rewind – September 1, 2010
