DOW JONES Positive?

In the month of September, the American retail market showed a growth of 1.1% in the month of September, a larger growth expected by economists. This is the biggest growth in the retail market in the last seven months and it was astounding that the auto dealerships and the clothing department was the leading success. The gas stations have seen an increase in selling as the auto industry has grown.

Coincidentally, during the same month of this great increase in retail, DOW Jones finally shows a positive increase. DOW has been dropping and dropping for quite some time, but now its risen 1.5%. I find this as a relief for DOW JONES because I’ve been noticing its constant drop with no sign of stabilization. It also shows that there may be a link between the retail market and DOW.

Also, the previous fear that the US was falling into a recession has faded due to this positive growth in the retail market. “Consumer spending accounts for as much as 70% of economic growth.” Although, economists are recommending that consumers hold back from future consumption because the unemployment rate is relatively high and wages are low. Also against the idea that there’s a higher consumption level, “the few sectors to miss out on September’s growth were groceries, liquor stores and retailers that sell books, music and sporting goods.” It is understandable that the sales of books and music are dropping because as technology continues to make advances, the need to actually buy books and music are decreasing. More and more people are learning to be more tech-savvy and so pirating of songs, and even books, are occurring more often. Songs are downloaded freely as opposed to iTunes purchasing, books are now more popularly ebooks where tablets are capable of holding many books in its system but weigh as light as one book.