wmeubank@ocp.kcmo.com
NIKKO MARKET COMMENTS
Prepared by
The Nikko Securities Co. International, Inc.
Economic News
November retail sales rose by 1.2% in both overall and core measures. The non-auto gain marginally surpassed market expectations for a 0.1% gain. However, downward revisions to the past two months' sales cast a softer tone on consumer demand. Auto sales were expected to rebound after two months of sales declines, but the auto sector posted a modest 0.2% increase in November. In October and November retail sales on average has been flat, starting Q4 with a weak tone. The Labor Department reported a sizeable upward revision to jobless claims for the November 29 week, blaming computer error in one reporting state. Claims in that week were initially reported as 303,000, but have been revised up to 324,000. Total claims fell to 311,000 this week. This information still shows severe tightness in the labor markets, though perhaps not at the alarming rate previously indicated. The insured unemployment rate stands at 1.9% in the November 29 week, with the prior week's rate revised up from 1.9% to 2.0%. The weekly ABC consumer comfort continued to rebound from the October plunge. The index rose 2 points this week and now stands at 13, just one point from the September 6 peak. Mortgage application volume fell slightly this week. More fluctuations in mortgage volume are expected going into the holiday period.
Robert A. Brusca, Chief Economist
The Nikko Securities Co. International, Inc.
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