Retail Sales for June Expected to Rise, Indicating Consumer Health

Traders are eagerly awaiting the release of June’s retail sales data on Tuesday morning, as it will provide a crucial insight into the state of consumer health. Economists surveyed by Dow Jones anticipate an increase of 0.5%, surpassing May’s gain of 0.3%. This data arrives at a significant time, following the latest reports on consumer and producer price index (PPI), which indicated that inflation grew at a slower pace than expected. The findings suggest that the Federal Reserve’s efforts to cool inflation through interest rate increases may be effective.

In analyzing Tuesday’s report, economists will be watching closely for any signs of retail sales coming in too hot. Such a scenario could potentially contribute to inflationary pressures and indicate a considerable increase in consumer spending. It is important to note that these numbers reflect the ongoing battle against inflation and serve as a pivotal gauge of the overall economic recovery.

Shares of FB Financial surged by approximately 14% in after-hours trading following the release of their second-quarter earnings results. The company reported earnings of 77 cents per share, surpassing consensus expectations of 65 cents per share. FB Financial ended the period with $10.87 billion in deposits, representing a slight increase from the same quarter last year but a slight decline from the first quarter.

In other news, Warren Buffett’s Berkshire Hathaway has significantly reduced its stake in video game publisher Activision Blizzard. After the release of securities filings, it was revealed that Berkshire Hathaway now holds a 1.9% stake in the company, down from 6.3% at the end of March. This announcement coincides with Microsoft’s impending acquisition of Activision, which is currently under review by regulatory authorities.

Overall, the forthcoming retail sales data for June will be closely monitored for indications of consumer spending and the status of inflation. Market participants will be particularly interested in whether the numbers veer towards any extreme outcomes, such as excessive growth or unexpected contraction. These figures are critical not only for traders and economists but for gauging the overall health of the economy and its trajectory towards recovery.