Shoppers drawn in by sales: American consumers that were enticed by warmer weather and discounts of up to 80% on summer merchandise went on a buying binge in June, helping many retailers deliver robust revenue gains for what is typically the second-biggest shopping month of the year. But as the U.S. economy struggles to revive, the concern among analysts is that the strong revenue momentum at big retailers such as Target and Costco may not extend into the busy back-to-school shopping season. Many consumers are already facing a weak job market and stagnant wages, and they’re likely to find higher prices on everything from clothing to handbags at summer’s end. “Promotions were the clear driver this month, and consumers took advantage of some outstanding deals,” says Ken Perkins, president of research firm RetailMetrics. “But that leaves a big question mark for July and the back-to-school season. Will shoppers be willing to spend full price? The upper end will be doing that, but the vast majority of customers will be a little more cautious.”
Applications down, but numbers still high: The number of Americans applying for unemployment benefits fell last week to the lowest level in seven weeks, although applications remain elevated. The Labor Department says applications for benefits dropped by 14,000 to a seasonally adjusted 418,000. The four-week average, a less volatile measure, declined for the first time in four weeks, to 424,750. Applications have topped 400,000 for 13 weeks, evidence that the job market has weakened since the beginning of the year. Applications had fallen in February to 375,000, a level that signals sustainable job growth. They stayed below 400,000 for seven of the next nine weeks. But then applications surged to an eight-month high of 478,000 in April and have shown only modest decreases since. Stock futures rose after payroll processor ADP said the private sector added 157,000 jobs last month. That was more than double what economists had forecast.
Gets credit for time served: A judge has sentenced Casey Anthony to four years in prison for lying to investigators but says she can go free in late July or early August because she has already served nearly three years in jail and has had good behavior. The judge sentenced Anthony today, two days after she was acquitted of first-degree murder in the death of her 2-year-old daughter, Caylee.
