Market Insider

Last look at consumer before Fed meets

Two sectors to buy ahead of the Fed

After consumer sentiment fell off a cliff, traders are watching to see whether consumers reined in spending in August.

Economists say retail sales for August are probably not going to reflect the same dip in sentiment yet, but markets are watching the Tuesday morning report closely nonetheless.

The widely watched Thomson/Reuters University of Michigan consumer sentiment gauge was a major disappointment Friday, when it fell to 85.7 in early September, from 91.9 in August, the lowest level in a year.

Read More Consumers may have just blocked a Sept rate hike

Retail sales are expected to have risen by 0.3 percent, slower than the 0.6 percent gain in July. Retail control, excluding gasoline, building materials and autos, is expected to be up 0.4 percent, according to Thomson Reuters. Control was up 0.3 percent in July. Excluding autos, sales were expected to gain 0.2 percent.