US: Retail sales likely to increase 0.7% in October – TDS

Analysts at TD Securities are above consensus for US October retail sales and looks for a 0.7% increase for the headline index (market: 0.5%).

Key Quotes

“Food services and building materials should leave the advance, with the latter benefiting from hurricane rebuilding efforts, although core retail sales should also see a strong gain (TD/market: 0.4%).”

“Empire Manufacturing and the Philadelphia Fed Index will shine a light on regional business conditions for November ahead of the ISM report. The market consensus is for both indices to post a modest decline, with Empire projected to dip to 20.0 form 21.1 while the Philadelphia Fed Index expected to decline to 20.0 from 22.2.”

“October import prices and initial jobless claims for the week of November 10 will round out the data calendar; the market looks for import prices to drift higher by 0.1% m/m while jobless claims are expected to hold steady at 213k.”

“Looking to the Fed, Governor Quarles will continue with his second day of Congressional testimony ahead of speeches by Bostic and Kashkari. Powell is scheduled to take part in a listening session on post-hurricane recovery efforts but any comments on the policy outlook are highly unlikely.”