(Wall Street) Rally's fate up to shoppers, Fed

[UpInArms]

Source: Reuters

NEW YORK (Reuters) - Wall Street's rally could persist this week as investors' conviction grows that the U.S. economy is on track for a recovery. But retailers' results, CPI and other consumer data could cast a pall if shoppers fail to show signs of life.

The focus will also be on the Federal Reserve, which will release a statement on Wednesday afternoon at the end of its two-day interest rate-setting meeting. The U.S. central bank is expected to hold rates near zero, so investors will look for signals of an exit strategy from its efforts to prop up the financial system.

The government's July retail sales data as well as quarterly scorecards from major retailers, including Wal-Mart Stores Inc (WMT.N), J.C. Penney (JCP.N) and Macy's (M.N), will give a snapshot of the industry and how consumer spending is faring in the recession. So far, consumers have tightened their belts and shopped mostly for just the bare necessities as worries about job security take precedence.

Encouraging U.S. manufacturing and employment data last week pushed all three major stock indexes to nine- and 10-month highs. And analysts said the enthusiasm from the better-than-expected reports should carry over into this week.

Read more: http://www.reuters.com/article/businessNews/idUSTRE5765ZG20090809?feedType=RSS&feedName=businessNews&sp=true

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Good luck with that!

[jwirr]

1. Since my income is just enough to live on I have never stopped buying. nt

[Metta]

2. As opposed to them giving back what they stole and encouraging lending and jobs.

Buck passers. Criminals against humanity. Happy karma.

[madrchsod]

3. the shoppers have no money and no credit

i`d like a newer car and a better tv. some new windows,heating and cooling. hell i`d settle for enough money to fix the oven and my dryer before winter and i`d like to go on a 2 or 3 day vaction....

but i ain`t got enough money to do any of that....

[jbnow]

4. Middle class who still have jobs and home have been

screwed by the credit card companies. Even those never late before saw interest rates soar and minimum payment percentage spike. (I think they want people to default while they still own credit default swaps on them since new CDS would be way more expensive now)

People don't use them the same way then. That's good on a personal level...but it is just weird that the financial institutions who ruined the overall economy and our individual wealth through their greed are now getting rich...and then screwing us over again. Most of us have our "wealth" in IRAs and homes and they demolished their worth.
As a reward we give them billions.
As our reward they freeze new credit and jack up rates on existing credit.
Rates from the fed is low low low, almost nothing....

There is something wrong

[FarCenter]

5. The "cash for clunkers" will likely torpedo hopes for retial spending

The resurgence of auto buying has run up consumer debt and depleted savings enough to endanger any recovery in retail spending.

[Vidar]

6. Since Wall Street now has all the money, let the tycoons ante up at Walmart.

[gtar100]

7. They don't care about creating real jobs but want people to spend.

What's wrong with that picture? Fucking Wall Street parasites think they are the shit that makes the world spin. Idiots.