Reports today revealed short term weakness in retail sales. This morning's release by Mitsubishi/Schroeder-Wertheim showed that its chain store sales index had declined by 0.3% during the week ended October 7. The Johnson Redbook release this afternoon reported that same-store sales at more than 20 department, discount and chain stores during the first week of October had fallen by 1.2% compared to September. We'll get a broader view of the retail sales picture on Friday when the Department of Commerce releases its report for September.

Any effect these data might have had on the stock market was swamped by other concerns. The bond market was initially buoyed by the news but ended the day little changed.

Merlin consulted his ouija board and saw that no major economic indicators were scheduled for release tomorrow. He'll be taking the day off to polish his crystal ball and install fresh batteries in his magic wand. But, he'll be back again on Thursday with a report on the Producer Price Index and other enchanting economic stuff.

Byline: Lafferty (MF Merlin)