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Daily Market Update 1/15/16

Rates moved lower Friday following the release of weaker than expected economic data in the U.S. and a sharp decline in global stock markets.  This morning, December Retail Sales fell 0.1%, below the consensus for a flat reading.  Excluding the volatile auto component, sales also fell 0.1%, well below the consensus forecast for a 0.2% increase.  Separately, December Industrial Production declined 0.4%, below expectations.  The Empire State regional manufacturing index fell to -19.4, far below the expected reading of -4.0.  Readings below zero indicate contraction in manufacturing in the New York region.  The Producer Price Index (PPI) fell 0.2% in December, close to forecast.  Core PPI, which excludes volatile food and energy components, rose 0.1% and was a tame 0.3% higher than one year ago.  On a positive note, Consumer Sentiment rose to 93.3.  A reading of 93.0 was expected.  No other key data will be released today.

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