Unfounded recession worries with soft landing firmly in place.

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Two new economic data showed recession worries are overblown:

Retail sales rose 1% in July, above the expected 0.4%.
Filings for unemployment insurance fell more than expected last week with 227,000 (vs, 235,000 expected) initial jobless claims filed in the week ending August 10th, down from 234,000 the week prior.

“There was almost nothing in the July retail sales report for the perma-bears to latch on to, with the rebound in retail sales led by a recovery in vehicle sales, but encouragingly broad-based with control group sales rising even further,” the team at Capital Economics wrote.
“All of a sudden, things have come together,” BMO Wealth Management US chief investment officer Yung-Yu Ma stated, “And what seems like almost a Goldilocks scenario for the data is a tremendous shift from what we had a week or so ago when we had the market sell-off.”
The chief investment officer added, “We think the soft landing is firmly in place.”

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