October'sheadline retail sales checked in at 0.4 percent, above expectations, and supported the view of those who would like to see the Federal Reserve begin tapering bond purchases sooner rather than later.
Ed Hyman at ISI group says there's a 60 percent chance the economy will accelerate in the coming weeks, citing the end of the government shutdown, as well as falling bond yields and gasoline prices. Foreign economies are also improving, and the next Fed Chair succeeds Ben Bernanke as the central bank's most vocal dove on monetary policy.
But there are warning signs: ISI also notes that their homebuilder survey declined to 52.0, the lowest level in a year--it was as high as 69.2 in May. The ISI Truckers Survey also neared its lowest level of the year.