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DOW + 38 = 18,039
SPX + 3 = 2130
NAS + 5 = 5082
10 YR YLD – .10 = 2.38%
OIL – .87 = 60.56
GOLD – 3.60 = 1183.00
SILV + .02 = 16.13
Retail sales rose 1.2% in May on a seasonally adjusted basis.  Auto dealers and gasoline stations posted the strongest sales, but most major retail segments saw healthy gains. What’s more, sales in April and March were stronger than initially reported. Sales at auto dealers rose 2%; the auto sector generates about one-fifth of all retail spending. Sales were up 3.7% at gasoline stations as the price of fuel crept higher. Even if autos and gasoline are excluded, retail sales rose a healthy 0.7%.
Separately, the Federal Reserve reports household debt grew just 2.2% in the first quarter, as a 0.3% fall in mortgage debt offset a 5.6% rise in auto loans, student loans and credit cards. At the same time, real estate value increased by $411 billion. The net effect is that household net worth jumped $1.6 trillion. Meanwhile, corporate debt grew at a 7.2% seasonally adjusted annual rate in the first quarter as businesses pile on debt before a possible Fed rate increase.
The number of US workers who applied for unemployment benefits in the first week of June edged up by 2,000 to 279,000. Claims have been below 300,000 for 14 weeks in a row, a feat last accomplished 15 years ago.
The prices the US paid for imported goods increased a seasonally adjusted 1.3% in May, entirely because of a sharp increase in fuel costs. It was the first increase in 11 months and the largest in more than three years. Fuel imports jumped 11.8%, the biggest increase since mid-2009, although oil is far less expensive compared to one year ago. Excluding fuel, import prices were unchanged last month.
The World Bank has joined the International Monetary Fund in urging the Federal Reserve to hold off on a rate hike until next year to avoid worsening exchange rate volatility and crimping global growth. The World Bank downgraded its outlook for global economic growth this year, lowering its forecast by 0.2% to 2.8%. The bank expects growth of 3.3% in 2016. The World Bank cut its 2015 forecast for the US economy by 0.5% to 2.7%, saying bad winter weather sapped output in the first quarter despite the economy now gathering steam.
German bunds fell again today, extending a sell-off that has pushed 10-year yields above 1% for the first time since September. The 10-year yield on German bunds edged higher to 1.02%, up sharply from the all-time low of 0.05% hit in April.
