A FUNNY THING HAPPENED TO THE RECOVERY - AT 9:03 A.M. ET: 

WASHINGTON (Reuters) - Sales at U.S. retailers unexpectedly fell in March, snapping two months of increases, as motor vehicle and electronic good purchases declined, according to a government report on Tuesday that indicated subdued consumer spending amid rising unemployment.

The Commerce Department said total retail sales dropped 1.1 percent after rising by a revised 0.3 percent in February, previously reported as a 0.1 percent fall.

COMMENT:  A good lesson that shows why stock market rallies are not necessarily indicative of an improving economy.  The Reuters report confirms what we sense by simply going out, looking around stores, and hearing anecdotes.  The economy is still dramatically weak.  And plans by some states to raise taxes will not help.

April 14, 2009