Investors will try hit the reset button on Monday and shake off the negative sentiment from Friday’s market downturn, pushed lower by weaker than expected corporate earnings from several department store U.S. retailers despite stronger than expected April retail sales results on Friday by the Department of Commerce.
Although April retail sales results outperformed expectations and rose 1.3 percent compared to the 0.8 percent consensus forecast from briefing.com, on Friday Nordstrom’s declined -13.42 percent, J.C. Penny’s lost -2.82 percent, and most department store retailers had a rough trading week overall after earnings results came in below consensus estimates.
Nordstrom’s posted weaker than expected first quarter results and lowered its full year annual forecast.
This week investors will be paying attention to CPI inflation results on Tuesday followed by Industrial Production and Capacity Utilization, Housing starts, and Building permits for April.
On Wednesday the Fed Minutes from their April 27th FOMC meeting will be released and provide the market with further clues about their monetary policy stance regarding the likelihood of an interest rate hike.
Existing home sales for April will come into focus on Friday.
Full Economic Calendar
Monday- Empire Manufacturing ( May), NAHB Housing Market Index (May), Net Long Term TIC flows (March).
Tuesday- CPI Inflation (April), Industrial Production and Capacity Utilization, Housing starts, and Building permits for April
Wednesday- Fed Minutes (4/27), Crude Inventories, MBA Mortgage Index
Thursday- Initial and Continuing Job Claims, Leading Indicators (April), Philadelphia Fed (May), Natural Gas Inventories
Friday- Existing Homes Sales (April)
Trump’s Tax Returns
Donald Trump has resisted calls so far from political leaders and journalists to release his tax returns. Every presidential nominee since 1976 has released their tax returns.
Trump claims that his taxes are under audit and told Good Morning America host George Stephanopoulos on Friday that when the audit ends he would present them. When asked what his tax rate was, Trump said it was “none of your business.”
On Sunday’s ABC This Week, Republican Chairman Reince Priebus said that the traditional playbook doesn’t apply for Donald Trump and suggested that Trump should be treated differently than the other nominees in the past.
“I think, though, that Donald Trump represents such a massive change to how things are done in Washington that people don’t look at Donald Trump as to whether or not he releases his taxes or what this story was of 30 years ago” Priebus said.
Here’s Republican Mitt Romney’s take on the whole issue.
Mr. Trump, tear down that tax wall. https://t.co/pQUZAJuE0k
— Mitt Romney (@MittRomney) May 11, 2016
Here is my latest You Tube video with some comments about the upcoming primary on Tuesday and reaction to Trump’s fiscal policies regarding the handling of the national debt and trade.