Retail Sales Disappoint, Stocks Dip Modestly

from FT:
Leading US chain retailers reported sales for December that came in below Wall Street’s expectations for the important Christmas shopping period, although sales for the two holiday months saw the strongest growth since 2006.
Retail Metrics, which tracks the monthly data, said its index of same-store sales data rose 3.2 per cent against a year ago, undershooting the 3.5 per cent consensus Wall Street forecast. Sales rose by 3 per cent for the same period a year ago.
But its index for the two holiday shopping months of November and December was up 4.1 per cent against a year ago, the most robust growth in four years.
Several retailers reported that sales in December had weakened after the strong performance seen in November, as consumers pulled back on spending.



(Reuters) - The Dow and S&P 500 dipped on Thursday as disappointing sales from top retailers dented hopes about the holiday shopping season and energy shares fell with oil prices.
Telecommunications shares, including AT&T (T.N) and Verizon (VZ.N), were among top drags on the Dow.
Several big U.S. retailers missed estimates for December sales after a post-Christmas blizzard that slowed a two-month shopping spree, driving down consumer shares. Target Corp (TGT.N) fell 6.1 percent to $55.33.
The disappointing retail sales contrasted with Wednesday's economic data showing a much stronger-than-expected gain in private-sector jobs for December, which buoyed optimism about Friday's unemployment report from the Labor Department.
The retail weakness "was both surprising and disturbing, but the fact that it was so broadly based makes me think it had more to do with weather than fundamentals," said Walter Todd, who helps manage about $900 million as chief investment officer at Greenwood Capital Associates in Greenwood, South Carolina.
Analysts noted recent market gains have put the S&P 500 in overbought territory, suggesting a temporary pullback could be in store in the near term. The S&P 500 is up about 8 percent since the start of December.
"It leaves the market vulnerable to profit-taking if there's a negative reaction to the jobs data," said Chris Burba, short-term market technician at Standard & Poor's in New York.
The Dow Jones industrial average .DJI was down 36.06 points, or 0.31 percent, at 11,686.83. The Standard & Poor's 500 Index .GSPC was down 0.3 percent at 1272.59. The Nasdaq Composite Index .IXIC was up 3.75 points, or 0.14 percent, at 2,705.95.