Investors Look Beyond Fed Rhetoric, Home Sales Fall 9th Month In a Row

Benchmark indexes traded sideways as investors shifted focus to corporate earnings and looked beyond comments from Fed officials. 

The latest comments suggested rapid rate hikes are likely to continue and interest rates are likely to stay elevated longer than previously estimated.  

The S&P 500 index increased 1.33 points to 3,947.89 and the Nasdaq Composite index fell 37.64 to 11,107.73. 

Crude oil declined 4% for the second day in a row and extended 2-day decline to 10% after focus shifted from supply worries to demand concerns. 

Resurgent coronavirus infections in China dashed hopes of the rebound in economic activities and weakened the outlook for an increase in oil imports.     

Crude oil declined $4.07 to $78.51 a barrel and natural gas fell 10 cents to $6.27 a thermal unit. 

Treasury yields rose on the back of hawkish comments from Federal Reserve officials for three days in a row. 

Investors are increasingly factoring that higher rates may not succeed in lowering inflation to the target range of 2%, without significantly impacting the economy and labor markets. 

The yield on 2-year Treasury notes rose to 4.47%, 10-year Treasury notes inched up to 3.78% and 30-year bonds edged up to 3.90%. 

Home Sales Lowest In Eleven Years 

Existing home sales fell 5.9% to a seasonally adjusted rate of 4.43 million from September, the ninth monthly sales decline in a row. 

Home sales  fell to the lowest level since December 2011, excluding a brief decline during the onset of the pandemic, on elevated home prices and surge in mortgage rates. 

"More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher. 

The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years", said NAR chief economist Lawrence Yun.

U.S. Stock Movers 

Gap Inc jumped 2.9% to $13.10 after the struggling retailer reported unexpected quarterly profit and higher-than-expected sales. 

Third quarter net sales increased 2% to $4.04 billion and comparable sales increased 1% from a year ago. 

Online sales increased 5% from a year ago and represented 35% of total sales. 

Third quarter income swung to $282 million compared to a loss of $252 million and diluted earnings per share was 77 cents compared to a loss of 40 cents a year ago. 

Foot Locker, Inc jumped 7.4% to  $35.51 after the retailer reported higher-than-expected sales and earnings and comparable store sales rose faster-than-expected. 

The retailer also lifted its annual outlook. 

Williams Sonoma, Inc declined 6.80% to  $121.61 after the housewares retailer reported better-than-expected quarterly sales and results. 

The retailer reiterated " mid-to-high single digit annual net revenue growth and operating margins relatively in-line with our fiscal year 2021 operating margin."

The stock has been on the slide after hitting the record high above $215 on November 19, 2021. 

Ross Stores, Inc jumped 11.4% to $109.31 after the discount retailer lifted its fourth quarter guidance. 

Bath & Body Works Sales Fall After Two Years of Rapid Growth

Bath & Body Works Inc soared 21% to  $37.80 after the retailer of personal products including candles and fragrances lifted its annual estimate. 

Sales 

Third quarter sales declined 5% to $1.60 billion from $1.68 billion a year ago, but an increase of 46% from the quarter in 2019. 

Total U.S. and Canada store sales declined 4.8% to $1.17 billion from $1.23 billion a year ago. 

Direct U.S. and Canada sales, which includes online sales, fell 6.4% to $345.5 million from $369.3 million a year ago. 

International sales increased 9.6% to $80.8 million from $73.7 million a year ago. 

Margins 

Third quarter gross profit fell to $677.6 million from $838.7 million a year ago and gross margin declined  to 42.2% from 49.9% a year ago. 

Third quarter operating income decreased to $118.7 million from $226.9 million a year ago.  

Third quarter of 2021 included expense of $89.1 million pre-tax loss for the early extinguishment of outstanding notes. 

Operating margin fell to 12.6% from 24.3% from a year ago. 

Net income margin fell to 5.7% from 14.6% from a year ago. 

Earnings 

Third quarter operating income was $201.8 million compared to $408.5 million in the similar quarter in 2021. 

Net income from  continuing operations was $91.0 million compared to $177.1 million in the similar quarter in 2021 

Third quarter earnings per share were 40 cents, ahead of the guidance range between 10 cents and 20 cents, but lower than 66 cents a year ago.

In the third quarter, weighted diluted outstanding shares declined to 229.1 million from 267.0 million a year ago. 

Inventories 

Total net inventories at the end of the third quarter increased to $1.27 billion from $1.15 billion a year ago. 

Long Term Debt 

At the end of the third quarter, long-term debt was unchanged at $4.86 billion. 

Cash Flow 

In the third quarter, net operating cash flow plunged to $66.3 million from $448.0 million in the corresponding period in 2021. 

Capital expenditure increased to $252.2 million from $240.9 million a year ago. 

Free cash turned negative to 185.9 million from positive cash flow of 207.1 million. 

Outlook 

The company lifted its outlook for the full-year on continued strength in its operations. 

Fourth quarter sales are expected to decline in mid-single to low-double digits compared to $3.027 billion sales in 2021. 

Gross margin rate in the fourth quarter is estimated between 41% and 42% and for the full-year 2022 rate is estimated between 42% and 43%. 

The retailer estimated fourth quarter earnings from continuing  operations per diluted share between $1.45 and $1.65. 

For fiscal 2022, earnings from continuing operations per diluted  share are estimated between $3.00 and $3.20, revised higher from its previous estimate of $2.70 to $3.00.

Dividend and Stock Repurchase 

On November 4, the company declared a regular quarterly dividend of 20 cents a share payable on Dec. 2, 2022 to shareholders of record on Nov. 18, 2022.

Management Changes 

Gina Boswell will assume the role of chief executive officer, replacing interim-CEO Sarah Nash as of December. 

Store Network 

The company opened 66 new stores and closed 34 in the nine-months to October. 

The store network increased to 1,787 at the end of October 2022 from 1,755 at the end of January 2022.  

Selling square feet space in the U.S. and Canada is expected to increase to 5.02 million at the end of 2022 from 4.75 million in the beginning of 2022.   

Rate Path Anxieties Drag S&P 500 Index Again, Oil Falls 4%

Benchmark indexes opened lower after Fed officials stepped up hawkish stance against inflation campaign and crude oil dropped 4%.  

Eurozone Inflation Acceleration Slows, Auto Registrations Rise, Swiss Trade Surplus Up

European markets closed mixed after geopolitical tensions eased and focus shifted to rising coronavirus infections in China. 

European bond yields were in focus after the U.S. Fed officials carried out another round of campaign to cool down market expectations. 

Investors also reviewed the latest data on inflation in the eurozone and new card registrations. 

The yield on 10-year German Bunds inched slightly higher to 2.02%, French bonds edged higher to 2.50%, the UK Gilt traded unchanged at 3.2% and Italian bonds held at 3.19%.

The DAX index increased 0.2% to 14,266.38, the CAC-40 index declined 0.5% to 6,576.12 and the FTSE 100 index fell 4.65 points to 7,346.54. 

The euro edged up to $1.03 and the British pound inched lower to $1.183. 

Eurozone Inflation Accelerate Rate Revised Lower 

Eurozone consumer price inflation accelerated less than expected in October, Eurostat reported Thursday. 

The annual rate of inflation in October was lowered to 10.6% from the previous estimate of 10.7% and the inflation rose from 9.9% in September. 

Core rate of inflation, which excludes food, energy, tobacco and alcohol, increased to 5.0% from 4.8% in September. 

October Vehicle Registration Rises, 3rd Monthly Increase

New automobile registrations in October rose for the third month in a row, the Brussels-based ACEA reported Thursday. 

Passenger vehicle registrations rose 12.2% in October to 745,855 from 664,861 a year ago. Registration increased 9.6% in September from the previous month. 

Despite the monthly increase, registrations are down by 290,000 from the pre-pandemic 2019 levels. 

January to October registrations declined 8.1% to 7.53 million from a year ago. 

Swiss Exports Decline Accelerates 

Swiss exports declined for the second month in a row in October, the Federal Customs Administration reported Thursday. 

Exports declined 1.1% from a year ago to 22.94 billion Swiss francs and imports dropped 1.4% to 19.97 billion Swiss francs from a year ago.  

Exports declined 1.8% in real terms after adjusting for inflation, following a 0.4% fall in September. 

Trade surplus rose to 2.98 billion Swiss francs from 2.93 billion Swiss francs in the previous month. 

Watch exports growth moderated but still remained high at 6.7% from a year ago and increased to 2.3 billion Swiss francs. 

Oil Drops 3% 

Crude oil traded lower after rising coronavirus infections in China, the largest importer of oil, dashed aside any hopes of relaxing stricter mobility restrictions. 

Supply resumed after a brief power outage through a Russian pipeline to Hungary but traders were cautious as the European Union's ban for Russian crude oil is scheduled to start in December and OPEC is expected to keep supply in check. 

Brent crude fell 3.2% to $89.93 a barrel and TTF natural gas prices fell 1.1% to 112.54 euros a MWh. 

Europe Stock Movers 

Siemens AG soared 7.6% to

October Housing Starts Dropped 4.2% but Completions Rose

Housing market continues to slide downwards since the rise of the mortgage rate doubled in the year so far and jumped to the level last seen in 2001.

Housing starts in October declined 4.2% in October from the previous month to a seasonally adjusted annual rate of 1.425 million., the U.S. Census Bureau reported Thursday.

Compared to a year ago, housing starts fell 8.8%.

Single family housing starts fell 6.1% annual rate to 855,000 and starts for multi-family units decreased 0.5% to 556,000.

Building permits declined 2.4% to 1.56 million from 1.564 in September and dropped 10.1% from a year ago rate of 1.698 million. 

Seasonally adjusted housing completions in October fell 6.4% to annual rate of 1.339 million from the revised September estimate of 1.431 million. 

Completions are 6.6% from a year ago rate of 1.256 million.  

Continuing Jobless Claims at 8-month High

For the week ending November 12, initial jobless claims declined 4,000 to 222,000 .

The claims in the previous week were revised to 226,000., said the U.S. Department of Labor in its weekly report.

Continuing jobless claims rose to 1.507 million for the week ending on November 5 from the previous week's 1,494 million claims.

The continuing claims have jumped to the March 26 level of 1.529 million.

Despite the historic low level of insured unemployment rate, the government reported data understate the unemployed counts.

A number of states are still struggling with online systems where unemployed can file their jobless claims. 

For example, Florida's filing system for jobless claims is filled with glitches and malfunction that goes back to the pandemic era causing many to lose benefits for weeks.  

Movers: Bath & Body Works, Cisco, EZCorp, Kohl's, Macy's, Nvidia

Bath & Body Works Inc soared 21% to  $37.80 after the retailer of personal products including candles and fragrances lifted its annual estimate.

Third quarter earnings per share were 40 cents, ahead of the guidance range between 10 cents and 20 cents, but lower than 66 cents a year ago.

Cisco Systems gained 4.5% to $46.04 after the company reported better-than-expected quarterly results.

EZCorp declined 7.5% to $9.04  after the operator of pawn shops reported fiscal fourth quarter revenue increase 21% to $233.4 million from $192.4 million a year ago. 

Net income in the quarter increased to $7.3 million from $1.6 million and diluted earnings per share rose to 11 cents from 3 cents a year ago. 

Pawn loans outstanding increased 19% to a record-high of $210.0 million.

Kohl's Corporation gained 2.2% to $30.56  after the retailer withdrew its annual outlook citing macro headwinds and economic uncertainty and the recent departure of the chief executive Michelle Gass. 

Total revenue in the third quarter declined 7.2% to $4.3 billion from $4.6 billion a year ago. 

Third quarter net income plunged 60% to $97 million from $243 million and diluted earnings per share dropped to 83 cents from $1.65 a year ago. 

The company previously announced 50 cents a share dividend. 

Stock traded higher on the hopes that the chip demand will recover in the first quarter of 2023.

Macy's Inc soared 12.01% to $22.11 after the company said same store sales fell less than expected and quarterly results were ahead of expectations.

The retailer also lifted its annual outlook.

Nvidia Corporation declined 0.2% to $158.86 after the graphics chipmaker reported lower-than-expected revenue and earnings in its latest quarter.

Total revenue declined to $5.93 billion, down 17% from a year ago and down 12% from the previous quarter. 

Net income declined 72% to $680 million from $2.46 billion and diluted earnings per share dropped to 27 cents from 97 cents a year ago. 

The chip maker guided fourth quarter revenue of $6 billion with a band of 2%.  

Another Round Of Fed Comments Drag Indexes Lower, Yields Rebound

Benchmark indexes opened lower after Fed officials stepped up campaign to cool down expectations of slower rate hikes in the future. 

Target Net Plunged 50%, Weak Guidance for Holiday-Quarter

Target Corp plunged 13.4% to $154.79 after the retailer said third quarter earnings fell, lowered its fourth quarter outlook and estimated weak holiday sales.

Sales in the third quarter ending on October 29, 2022 increased 3.3% to $26.1 billion from $25.3 billion a year ago.

In the quarter, net earnings plunged 52.1% to $712 million from $1.49 billion and diluted earnings per share fell to $1.54 from $3.04 a year ago.

Comparable sales in the third quarter increased 2.7% on top of 12.7% in the previous year's period, driven by 1.4% increase in store traffic and 1.3% increase in average ticket.

Target plans to cut costs between $2 billion and $3 billion over the next three years, and the company sees opportunities to improvement efficiency after sales surged 40% since 2019. 

Third quarter gross margin declined to 24.7% from 28.0% and operating margin fell to 3.9% from 7.8% a year ago.  

Gross margins declined after the company was forced to deal with more inflow of goods and rising activities in distribution centers. 

Higher markdowns rates, inventory shrinks and merchandise costs and freight rates also affected gross margin. 

Inventories 

Inventories rose at a slower pace to $17.1 billion at the end of the third quarter from $14.96 billion a year ago. 

The company blamed $400 million lost in revenue on organized retail crime. 

Cash Flow 

Third quarter cash flow from operating activities plunged to $552 million from $5.6 billion a year ago .

Free cash flow turned to negative $3.77 billion from positive $3.1 billion a year ago. 

Outlook 

The retailer lowered its expectations for top line and bottom line as families struggle with rising gasoline prices and higher food costs and inflation. 

The company said sales softness is likely to persist in the fourth quarter and forecasted comparable sales to decline in "low-single digit" and operating margin to decline around 3%.  

Dividends and Stocks Repurchase 

The quarterly dividend payout increased to $497 million from $440 million a year ago, reflecting a 20.0% increase in the dividend per share  offset by fewer outstanding shares. 

The company did not repurchase any of its shares in the quarter and still has about $9.7 billion available for purchase in its stock repurchase program. 

Retail Network 

The company operated 1,941 stores at the end of the third quarter compared to 1,924 a year ago. 

The number of stores with more than 170,000 square feet was unchanged at 274 from a year ago. 

The number of stores with an area between 50,000 and 169,999 square feet increased to 1,522 from 1,515 a year ago.  

Stocks Remained Depressed, Treasury Yields Drop On Slower Rate Hike Hopes

Benchmark  index dropped after Target issued gloomy holiday sales outlook and investors digested latest retail sales and industrial output data.

Retail sector stocks led the decliners after Target Corp reported a sharp fall in its latest quarterly earnings but showed a marked improvement in its bloated inventories.

But what ailed the market was the gloomy outlook for the holiday period as the retailer said consumers are sticking to the basics and avoiding full-price items and discretionary purchases.

The S&P 500 index fell 0.8% to 3,958.79 and the Nasdaq Composite index dropped 1.5% to 11,183.66. 

Among the widely held tech stocks, Apple, Amazon, Meta Platforms and Intel dropped between 1% and 3.3%. 

Crude oil fell $1.39 to $85.52 a barrel and natural gas futures rose 19 cents to $6.22 a thermal unit.

Treasury yields fell after the Federal Reserve Governor Chris Waller showed his willingness to slow rate hike following the two lighter-than-expected inflation reports. 

"The data of the past few weeks have made me more comfortable considering stepping down to a 50-basis-point hike," Waller said at a gathering in Phoenix, Arizona today. 

However, he stressed that the inflation is still too high and the Fed is not done in fighting 4-decade elevated inflation. 

Lowe's Operating Income Rises On Sustained Demand, Sells Canada Operations

Lowe's Companies soared 5.5% to $220.18 after the home improvement retailer lifted its full-year earnings outlook.  

Total sales in the third quarter increased 2.6% to $23.5 billion from $22.9 billion a year ago and total comparable sales increased 2.2% and the U.S. comparable store sales rose 3.0%.

Net income in the quarter dropped to $154 million from $1.78 billion and diluted earnings per share fell to 25 cents from $2.74 a year ago.

Excluding pre-tax non-cash impairment charges of $2.1 billion linked to the Canadian operations, third quarter quarter earnings were  $3.27 a share.

The company is looking to close the sale of its Canadian operation in the first quarter of 2023. 

The company agreed to sell its Canadian network of 450 stores for $400 million to New York-based private equity investment company Sycamore Partners.  

Lowe's Canada operated under several brand names including Reno-Depot, Lowe's Canada, Rona and Dick's Lumber. 

"The sale of our Canadian retail business is an important step toward simplifying the Lowe's business model. 

While this business represents approximately 7% of our full year 2022 sales outlook, it also represents approximately 60 basis points of dilution on our full year 2022 operating margin outlook," said Marvin R. Ellison, Lowe's chairman, president and CEO.

Inventories 

Net merchandise inventories rose to $19.8 billion from $16.7 billion from a year ago. 

Cash Flow 

In the third quarter, net cash flow provided by operating activities declined to $8.1 billion from $9.2 billion a year ago. 

Free cash flow dropped to roughly $7.0 billion from $8.0 billion a year ago. 

Outlook 

The company revised higher its full-year outlook on stronger-than-expected operating results. 

The company guided full-year 2022 sales outlook between $97 billion and $98 billion and comparable sales are estimated to fall in the range of flat to a decline of 1.0%.

Sales in the 53rd week of 2022 are estimated to fall between $1.0 billion and $1.5 billion. 

Dividends and Stock Repurchase 

In the quarter, the company repurchased 20.5 million shares for $4.0 billion and paid $666 million in dividends. 

In the third quarter a year ago, the company repurchased $2.8 billion of its shares and paid dividends of $551 million. 

Store Network 

Lowe's operates 1,969 home improvement stores and hardware store in the U.S. and Canada, representing 208 million square feet of retail selling space. 

Advance Auto Net Drops 35%, Retailer Pushes More Store Brands

Advance Auto Parts plunged 16.3% to $153.77 after the retailer reported mixed quarterly results and reiterated weak annual outlook.

Net sales in the third quarter increased 0.8% to $2.64 billion  and comparable store sales declined 0.7%.

Gross profit margin decreased 44 basis points to 44.7% of net sales.

In the quarter, operating income margin decreased to 6.7% of net sales compared to 8.7% a year ago. 

Net income in the quarter dropped 35% to $111 million from $169.8 million and diluted earnings per share fell to $1.84 from $2.68 a year ago.

The LIFO, Last In First Out, impact on earnings increased to $67.5 million from $29.4 million a year ago.  

Free Cash Flow 

In the third quarter, net cash provided by operating activities declined to $483.1 million from $924.9 million a year ago. 

The decrease was primarily driven by lower Net income and working capital. 

Free  cash flow in the quarter fell to $149.5 million from $734.0 million in the same period a year ago. 

Outlook 

The retailer reiterated its annual sales outlook between $11.0 billion and $11.2 billion and comparable store sales to range between flat and 0.1% decline. 

The company also revised its free annual cash flow outlook to minimum $300 million from minimum $700 million. 

The company reiterated its new store and branch opening in the range between 125 and 150 in the year. 

The retailer opened 37 new stores and branches in the third quarter. 

Dividend and Stock Repurchase 

The company declared a cash dividend of $1.50 per share to be paid to shareholders on record on December 16, 20222 on January 3,  2023. 

In the third quarter, the company repurchased 0.4 million shares of its common stock at an aggregate  cost of $75.0 million, or an average price of $168.93 per share.

At the end of the quartet, the company still have $1.0 billion available in its stock repurchase program. 

Movers: Advance Auto Parts, Carnival Corp, Krispy Kreme, Lowe's Companies, Similarweb, Target, TJX

Advance Auto Parts plunged 16.3% to $153.77 after the retailer reported mixed quarterly results and reiterated weak annual outlook.

Net sales in the third quarter increased 0.8% to $2.64 billion  and comparable store sales declined 0.7%. 

Gross profit margin decreased 44 basis points to 44.7% of net sales. 

Net income in the quarter dropped to $111 million from $169.8 million and diluted earnings per share fell to $1.84 from $2.68 a year ago. 

In the third quarter, the company repurchased 0.4 million shares of its common stock at an aggregate  cost of $75.0 million, or an average price of $168.93 per share. 

The retailer reiterated its annual sales outlook between $11.0 billion and $11.2 billion and comparable store sales to range between flat and 0.1% decline. The company also revised its free annual cash flow outlook to minimum $300 million from minimum $700 million. 

Carnival Corp dropped 12.9% to $9.71 after the cruise operators said it plans to offer $1 billion of convertible debt as part of its debt refinancing plan.

The company priced its 5.75% senior notes convertible offering at equivalent to $13.39 a share, 20% premium of the November 15 , 2022 closing prices. The notes will mature at the end of December 2027. 

Krispy Kreme Inc jumped 0.7% to  $14.59 after the bagel chain reported a rise in third quarter sales and a wider loss. 

Revenue in the third quarter increased 10.1% from a year ago to $377.5 million, or 13.4% in constant currency or organic revenue increase of 12.0%. 

Net loss in the quarter widened to $11.8 million from $8.1 million and diluted loss per share increased to 8 cents to 4 cents. 

The company guided full-year 2022 net revenue in the range of $1.49 billion to $1.52 billion and capital expenditure between $105 million and $110 million, about 7% of total sales. 

Lowe's Companies soared 5.5% to $220.18 and the home improvement retailer lifted its full-year earnings outlook and said U.S. comparable sales rose 3%.

Total sales in the third quarter increased to $23.5 billion from $22.9 billion a year ago and total comparable sales increased 2.2% and the U.S. comparable store sales rose 3.0%. 

Net income in the quarter dropped to $154 million from $1.78 billion and diluted earnings per share fell to 25 cents to $2.74 a year ago. 

Excluding pre-tax non-cash impairment charges of $2.1 billion linked to the Canadian operations, third quarter quarter earnings were  $3.27 a share. 

The company guided full-year 2022 sales outlook between $97 billion and $98 billion and comparable sales are estimated to fall in the range of flat to a decline of 1.0%. 

Sales in the 53rd week of 2022 are estimated to fall between $1.0 billion and $1.5 billion. 

Similarweb Ltd plunged 23.5% to $5.06 after the company reported larger loss in the third quarter and said it plans to cut its global workforce by 10%. 

Revenue in the quarter increased 41% to $50 million from $35.6 million a year ago. 

Net loss in the third quarter expanded to $21 million from $17.3 million and diluted loss per share rose to 28 cents from 23 cents a year ago. 

The average customer revenue increased 15% to $51,570 on 21% increase in number of customers to 3,911.  

The company lowered its fourth quarter revenue in the range of $50.5 million and $50.9 million, an increase of 26% from the mid-point of the range.  

Target Corp plunged 13.4% to $154.79 after the retailer said third quarter earnings fell, lowered its fourth quarter outlook and estimated weak holiday sales.

Sales in the third quarter ending on October 29, 2022 increased 3.3% to $26.1 billion from $25.3 billion a year ago. 

In the quarter, net earnings plunged 52.1% to $712 million from $1.49 billion and diluted earnings per share fell to $1.54 from $3.04 a year ago. 

Comparable sales in the third quarter increased 2.7% on top of 12.7% in the previous year's period, driven by 1.4% increase in store traffic and 1.3% increase in average ticket. 

The company said sales softness is likely to persist in the fourth quarter and estimated "centered around a low-single digit decline in comparable sales."

The company said it plans to cut costs between $2 billion and $3 billion over the next three years after sales have surged 40% since 2019.

Inventories rose at a slower pace to $17.1 billion at the end of the third quarter from $14.96 billion a year ago. 

TJX Companies added 3.7% to $78.09 after the close-out retailer reported a decline in sales but better-than-expected earnings. 

Third quarter revenue declined 3% to $12.2 billion from $12.5 billion a year ago. 

Net income in the third quarter inched up to $1.06 billion from $1.02 billion and diluted earnings per share increased to 91 cents from 84 cents a year ago. 

U.S. same store sales in the quarter declined 2% after rising 16% in the quarter a year ago, driven by 16% fall in Home Goods and 3% increase in combined sales at TJ Maxx and Marshalls. 

Homebuilder sentiment index in November fell to the lowest level in a decade as builders struggle with higher costs and buyers with affordability.

Retail Sales Rise In October On Resilient Consumers

Retail sales rose in October driven by higher auto and gasoline sales but the weakness in electronics and appliance sales persisted, the U.S. Census Bureau reported Wednesday.

Retail sales, unadjusted for inflation, rose 1.3% in October from September and 8.3% from a year ago, on a rebound in auto and gasoline sales.

Auto dealers sales increased 1.3% from September and 5.2% from a year ago after supply chain problems eased and gasoline stations sales rose 4.1% and 17.8% respectively.

Department stores and electronics and appliance were the only two categories where sales declined from the month and a year ago.

Electronics and appliances sales in October declined 0.3% from September and plunged 12.1% from a year ago.

Department store sales declined 2.1% from September and dropped 1.6% from a year ago.

Food services and drinking places sales increased 1.6% from September and 14.1% from a year ago.