- US April advance retail sales +0.9% vs +0.9% expected
- Powell: We need to see growth moving down from the very high levels we saw last year
- US NAHB May housing market index 69 vs 75 expected
- April US industrial production +1.1% vs +0.5% expected
- Fed's Kashkari: We will get rates to at least neutral by end of year
- Fed's Bullard: Household consumption expected to hold up through this year
- BOE's Cunliffe: As tightening and QT starts, we'll see a move out of risky assets
- Atlanta Fed GDPNow rises to 2.5% from 1.8% last week
- Lagarde will give national central bank leaders a larger say at meetings - report
- France's Macron: French arms deliveries are ongoing and will intensify
- Home Depot highlights the strong backdrop for US housing ahead of the NAHB index
Markets:
- Gold down $7 to $1816
- US 10-year yields up 10 bps to 2.98%
- WTI crude oil down $2.21 to $111.98
- S&P 500 up 81 points to 4089
- GBP leads, JPY lags
The underlying numbers and revisions in the retail sales report painted a stronger picture than the headline. Comments from Wal-Mart and Home Depot regarding the consumer were also positive.The data sent the dollar moderately higher at first but the moves were tempered.
The market waited for most of the day in anticipation of Powell and he delivered some volatility. In general, his comments were on the hawkish side, though it's debatable how much of that was already priced in. He laid out of a path where the Fed will continue to hike until it sees clear signs of inflation cooling. That talk initially cooled risk assets and boosted the dollar but after he finished those moves completely reversed and stocks finished near the highs, despite the bump up in yields.
