Stock Market Update

Equity futures point to a higher open as investors digest a strong batch of earnings, while geopolitical headlines continue to suggest a potential de-escalation in the Iran conflict despite ongoing uncertainty.

On the data front, total retail sales increased 1.7% month-over-month in March (Briefing.com consensus: 1.3%), driven by a 15.5% increase in gasoline sales, following an upwardly revised 0.7% increase (from 0.6%) in February. Excluding autos, retail sales surged 1.9% (Briefing.com consensus: 0.9%) following an upwardly revised 0.7% increase (from 0.5%) in February.

The key takeaway from the report is that retail sales look great from a headline perspective, but higher gas prices and higher prices in general were the main drivers. Excluding gasoline sales, retail sales were up 0.6% month-over-month, which looks good, but remember retail sales are not adjusted for price changes. Accordingly, it becomes evident that the sales gains in March were driven more by higher prices than increased volume, which is a better indication of demand.