Stock Market Update

The stock market is on track for a modestly higher opening, as this morning's sizable batch of economic data has done little to move equity futures. 

Total retail sales increased 0.6% month-over-month in August (Briefing.com consensus: 0.3%) following an upwardly revised 0.6% (from 0.5%) in July. Excluding autos, retail sales jumped 0.7% month-over-month (Briefing.com consensus: 0.3%) following an upwardly revised 0.4% increase (from 0.3%) in July.

The key takeaway from the report is that it reflects a consumer still spending at a good clip. The retail sales data are not adjusted for price changes. Granted, higher prices accounted for some of the increased sales activity in August, but they didn't account for all of it.

Import prices increased 0.3% month-over-month in August following a downwardly revised 0.2% (from 0.4%) in July. Excluding fuel, import prices were up 0.4% month-over-month following a revised unchanged (from 0.3%) in July. Export prices rose 0.3% month-over-month following an upwardly revised 0.3% (from 0.1%) in July. Excluding agricultural products, export prices were also up 0.3% following an upwardly revised 0.3% (from 0.1%) in July.

The key takeaway from the report, or really, the key focal point, is the 0.4% increase in nonfuel import prices. That increase will continue to stoke concerns about tariff-driven inflation pressures.

Just released, industrial production increased 0.1% month-over-month in August (Briefing.com consensus 0.0%) following a downwardly revised 0.4% decrease (from -0.1%) in July.

The capacity utilization rate was 77.4% (Briefing.com consensus 77.4%), from a downwardly revised unchanged reading (from 77.5%) in July.