Market Reflections 7/14/2009

Strength in retail sales and exceptionally strong earnings at Goldman Sachs reawakened spirits which have been dulled by two months of disappointing economic news and consolidation in the stock market. The S&P rose 0.5 percent to just over 905. Gains would probably have been stronger if not for some soft spots in retail sales including a fourth consecutive month of declines outside of autos and gas stations, two categories that were very strong in June. Demand for safety eased making for a 10 basis point rise in the 10-year Treasury yield to 3.45 percent. Most commodities were steady with oil at $59.50 and gold at $925. Base metals, however, jumped on news of a rise in EMU industrial production. Copper rose 5 percent to $2.29/lb.