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Investing Specialists

Don't Give Too Much Credit to Retail Sales 'Rebound'

A sloppy retail sales report wasn't as great as it seemed and raises questions concerning economic strength.

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Markets were in a generally dour mood this week as both bonds and stocks suffered minor setbacks for the week. U.S. Federal Reserve minutes indicated strong potential for a rate hike in 2016, which was probably the markets' main worry. Fed concerns center on potential bubbles and pockets of inflation created by low interest rates at a time labor markets are seemingly tight. Although most governors share this concern, there is greater disagreement over the health of the economy. Some economic data this week, considered strong by some, included a larger-than-expected producer prices increase in September and a rebound in U.S. retail sales.

Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.