New Reports Add Fuel To Bull Market

Economy

Economic reports showing low inflation and slower growth gave the bull market of 1997 a strong push this week.

On Thursday, the Commerce Department reported that retail sales slumped in May for a third consecutive month, adding to evidence that the Federal Reserve won’t have to raise interest rates in July.

It was the first time in nearly 16 years that sales had dropped three months in a row. Spending slipped a seasonally adjusted 0.1 percent in May after declines of 0.9 percent in April and 0.3 percent in March.

The May sales drop was the biggest setback since February 1995.

The May decline in retail spending reflected a 0.2 percent drop in auto sales, the third straight decrease. Sales also fell at garden supply shops and general hardware stores, restaurants and bars and gas stations. But general department stores and furniture stores reported increases.

In a second report Thursday, the Labor Department said the number of persons filing new claims for unemployment benefits rose by 1,000 last week to 339,000. The four-week moving average of claims climbed by 5,250, the highest level since mid-May.