7/12/10 – theGrio & CNBC Market Update
VIDEO - This week, investors await the start of the second quarter earnings season and expect reports on small business sentiment, retail sales and industrial production...
TheGrio and CNBC team up to deliver a weekly report of money matters and market updates for our community.
CNBC’s Shartia Brantley reports:
Last week, investors digested several reports indicating that the economic recovery is continuing at a slower pace than previously observed. Service industries are reporting moderate growth, but concern is widespread over unemployment and restrictions on capital.
This week, investors await the start of the second quarter earnings season with reports from Intel, Chevron, and Bank of America. Reports are also expected on small business sentiment, retail sales and industrial production.
Business owners weigh in with the June 2010 Index of Small Business Optimism from the National Federation of Independent Business (NFIB). In May, small business optimism rose to the highest levels since September 2008, with a 92.2 reading. Despite an overall positive outlook on future economic trends, small business owners are still reluctant to hire or buy equipment.
We’ll get insight on the retail sector Wednesday, with the May Retail Sales report from the Census Bureau. Retail sales, including food, clothing and auto sales, are estimated to decline by 1.2 percent, the largest drop in 8 months. Auto sales in particular are estimated to drop 1.7 percent. Despite the declines, retail sales are still significantly higher than comparable 2009 levels.
We’ll get another read on the economy with the Federal Reserve’s June Industrial Production report, detailing changes in the manufacturing, mining and utilities sectors. Industrial production rose 1.2 percent in May, driven largely by gains in factories and utilities, as warm weather pushed up utility usage.
Watch the video, exclusively on theGrio.com.
