US Stock Market Hit Record Highs; Retail Sales Increased

WASHINGTON, D.C. – The US stock market ended the week with an optimistic sentiment, closing at fresh all-time highs as retail sales go up.

On Friday, the US stock prices have rallied, which allowed all three of the major stock indexes in the country to end the week, hitting record highs. One of the major factors that led to a positive end of the week price stock price change was the commentary from Larry Kudlow, the national economic advisor to the US. His statement on trade talks getting close to an agreement has helped mend investors sentiment and support the stock prices at the end of the week.

Healthcare stocks proved to be the highest gainer, which came after the US president, Donald Trump, commended the plan to reduce costs in healthcare.

On the other hand, the retail sales reported later in the week also showed a stronger number, a lot better than what was expected, while the industrial production didn’t have the same sentiment.

The VIX volatility index was down by about 7% on Friday but gained an approximate 1% for the entire week. Most of the market ended on a positive note, with the healthcare and energy sector the top gainers. The US treasury yields have also eased going down to 1.84% for this week.

On a report on Friday, the US Commerce Department stated that the headline retail sales had about a 0.3% increase for the last month, which was supported by purchases on motor vehicles. The number was positively higher than the 0.2% rise in retail sales, which was expected for October. Overall, retail sales have gained over 3.1% throughout the year.

The retail sales have gained 0.3% for the last month, excluding gasoline, automobiles, food services, and building materials. There was a 0.5% gain in October for the auto sales alone, which was significantly higher compared to the 1.3% decline the sector had in September. Service station receipts have also gone up 1.1% from the 0.1% dip the prior month. The online retail sales also continued an uptrend after gaining 0.9% in October from September’s 0.2% increase.

On the other hand, the sales at the appliance and electronic stores decline by about 0.4%. Sales in bars and restaurants were also down by 0.3% for October.

Further, the industrial production in the US also dipped 0.8% in October, marking its largest decrease since May 2018, according to a report from the Federal Reserve on Friday. The dip was a lot sharper than the 0.5% expected to decrease. The major factor affecting the drop was the strike by the United Auto Workers at General Motors, which caused a 7.1% drop in auto production.