The broad markets are trending down as slowing growth is starting to nibble at corporate top and bottom lines. Retail sales for June are the newest example of the negative effects caused by the outsized debt levels in Europe and slowing GDP growth in China. For the third straight month, retail sales in the United States declined as consumers are holding off discretionary spending until the labor market starts to pick up.
The negative growth figures that have been piling up this past quarter will not be corrected anytime soon, as the International Monetary Fund cut its global growth forecasts for 2013. The IMF stated Europe's debt crisis is causing headwinds for emerging markets and it expects global growth to shrink to 3.9% from its original 4.1% figure.
How are the markets holding up?
Dow Jones Industrial Average
|WTI Oil Futures||1.16||1.33%|
Source: Yahoo! Finance.
The last time retail sales dropped for three consecutive months was during the housing market collapse in 2008. Today's retail report is punishing Home Depot, down 1.17%, as building materials slipped 1.6% from in June. Staying in the Dow, Caterpillar
J.B. Hunt will announce its second-quarter results after the markets close today, with an expected EPS of $0.67 on revenue of $1.31 billion. If J.B. Hunt hits its estimates, the company will grow its earnings by 26% year over year.
Alpha Natural Resources
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Joel South owns shares of no company listed above. The Motley Fool owns shares of Citigroup. Motley Fool newsletter services have recommended buying shares of Home Depot. The Motley Fool has a disclosure policy.
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