Expect more weak Retail Sales after the Walmart leak
Econoday played this weeks weak retail sales off on coming off of a solid December but clearly if Walmart is seeing the worse month in seven years then retail sales reports will continue to be weak. We have a divergence with stocks soaring higher on POMO (tax dollars buying stocks for banks).
from econoday last Wednesday
Clearly the pace of spending slowed in January. However, it is hard to discern the impact of higher taxes given that January came off a strong December. Pullback is normal after a strong month. It is going to take additional reports to determine the impact of higher payroll and income taxes on retail sales.