U.S. retail sales fell 0.6% in July, the first decline in nine months and the biggest in 14, while the University of Michigan's preliminary consumer sentiment index for August dropped to 51.0, well below the 54.5 consensus. Core retail sales, which most closely correspond to the consumer spending component of GDP, fell 0.4% versus expectations of a 0.3% increase. The Nasdaq Composite slid 0.44%, the Dow Jones Industrial Average lost 0.21%, and the S&P 500 fell 0.19% at midday, though both the S&P 500 and the Nasdaq remain on track for a third straight weekly gain. Broadcom fell 5.6% and gave up roughly $105 billion in market value, the single largest drag on both the S&P 500 and the Nasdaq, while Applied Materials dropped 4% despite guiding revenue above expectations. One-year inflation expectations ticked up to 4.3%, an uncomfortable combination with weak confidence for the Federal Reserve.
