Your Weekly Market Blip 11/13/15

Your Weekly Market Blip 11/13/15

Stocks continued to decline aided by falling oil prices and weak consumer sales data. The Dow closed off 190 points to 17,257. Trading volume edged higher. For the week the Dow fell over 600 points or about 3.5%.
Upscale retail for sale! Nordstrom’s reported disappointing results yesterday sending shares lower by about 15%. Overall sales were up 6% but earnings badly missed estimates and the company lowered its forward sales growth guidance by 10%. Same store sales rose 0.9% which was lower than expectations calling for a rise of 3.6%. This report is another sign that apparel retailers could be facing a tough Christmas as warm weather and declining traffic in malls is hitting the bottom line.
October retail spending was up a tenth of a point in the latest reading but this was less than the three tenths gain the gurus had expected. Analysts had hoped that US GDP growth would accelerate in the 4th quarter to about 4% but today’s initial weak retail spending report might cause a downward revision. Cheap gas was supposed to help retail sales but so far it has not translated into robust consumption in the retail sector of the economy.
Oil had a terrible week falling about 8% as commodities continue to get pounded. WTI crude finished the week at $40.75 per barrel and is near a 6 year low. The IEA reported that global stockpiles of oil are now at 3 billion barrels as record production from places like Russia is offsetting demand growth from places like India. While some feel oil could rebound in 2016 others are speculating that oil might not move higher until 2020. Meanwhile natural gas prices in the US was up 5% as winter demand and the pending start of LNG exports to Europe supported prices.