By: Kent Engelke | Capitol Securities

Equities staged a bifurcated rebound on the perception that tensions are easing with North Korea. Volume was anemic as trading was dominated by technology based momentum programs.

Data released this week will offer some insight into third quarter economic growth. As I wrote yesterday, the St. Louis Fed is projecting a 3.68% 3Q rate. To write the obvious, a lot can happen in the next six weeks and preliminary estimates should always be treated with suspect.

Today retail sales are released as is a housing sentiment indicator. How will such be interpreted?

All will accept the method of retail shopping is changing, albeit perhaps not to the degree many may believe. According to the Commerce Department during the first quarter of 2017, approximately 8% of total retail sales occurred via the Internet. Like many, I thought this amount would be higher.

For what it is worth department, Wal-Mart is 10% of non-automotive retail sales and its Internet sales are included in the 8% figure mentioned above.

Yes, the overall growth rate is hyperbolic as compared to traditional channels, but on-line sales are far from taking over. I was also surprised to learn annual same store sales from “non store retailers” are up only 10% on annual pace according to the Commerce Department. Based upon the popular narrative, I would have thought sale increases would be considerably higher.

Perhaps the greatest impact of on-line sales is the additional venues of selling a product where often times price is only the determinate of a purchasing decision.

Analysts are expecting a 0.3% increase in overall retail sale in July, up 0.4% ex autos.

Last night the foreign markets were up. London was up 0.59%, Paris was up 0.47% and Frankfurt was up 0.27%. China was up 0.43%, Japan was up 1.11% and Hang Sang was down 0.28%.

The Dow should open quiet. The 10-year is off 10/32 to yield 2.25%.