US retail sales data disappoint

Wall Street opened down today over the Commerce Department’s report that retail sales fell 1.1 percent in March, the biggest drop in three months. Analysts polled by Thomson Reuters had expected an increase of 0.3 percent. In one bright spot, February retail sales were revised to show modest growth rather than the slight dip originally reported.

The government also said businesses reduced inventories by 1.3 percent in February, close to the 1.2 percent fall that economists had been expecting. Investors are hoping businesses will be able to work through inventory and better align costs with demand.

The drop in stocks followed more signs that companies reporting earnings for the January-March quarter might be able to beat Wall Street’s modest expectations.

Categories: US Markets, World Economy
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