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Yesterday's rally began after Wal-Mart (WMT) reported better than expected retail sales numbers. Wal-Mart reported that same store sales (excluding gasoline sales) rose 2.4% (forecast +1-2%), but what they failed to mention was the sales gains from food were not reported.
In fact, most wholesale clubs like Sam's sell both food and gasoline. The sales of other items sold were actually within the 1-2% estimates. This brings into question how much of Wal-Mart's sales gains were due to inflationary pressures from food and energy? By misinformation I mean the numbers we received from Wal-Mart were not an accurate indicator of what is going on with the consumer. This morning’s retail sales numbers are.
Today, the Commerce Department said that Retail sales in June fell 0.9 percent, the bigeest drop in almost two years. Read Bloomberg-U.S. Retail Sales Fell More Than Forecast in June
Based on today's retail sales numbers, the stock market should be giving back all of yesterday's gains. Tell me this market isn't being manipulated.

