Wednesday's Economic Numbers: Retail Sales (GM, F, ANN, ANF)

Retail Sales figures are set to come out at 8:30 a.m. EST this morning. Market Impact: High Motor vehicle sales and gas stations were key factors in last month's solid results as brutal snowstorms did not have as much of a negative impact as anticipated. If numbers meet or exceed estimates look for recently beat up auto names such as General Motors Company GM and Ford Motor Company F to bounce. Also, equities such as Abercrombie and Fitch ANF and AnnTaylor Stores ANN, which are both near 52-week highs, could bust out to new levels if strong growth is reported. Consensus estimates are looking for 0.5% growth in Retail Sales (prior 1.0%). The Street is expecting Retail Sales ex-auto to come in at 0.7% (prior 0.7%). Retail Sales are the first report of the month regarding consumer spending and are capable of big surprises and revisions. Consumer spending composes 70% of total economic activity; retail sales make up 33% of that. The report is one of the best tools for tracking changes in consumer spending in the United States. Good numbers are a sign of economic growth and positive sentiment. The report conveys spending on goods from places such as department stores, auto dealers, gas stations, and restaurants. Money spent on services is not included in the numbers.