{"id":66523,"date":"2026-08-14T08:38:12","date_gmt":"2026-08-14T12:38:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-retail-sales-unexpectedly-slump-in-july-reddit-set-to-join-sp-500\/66523\/"},"modified":"2026-08-14T08:38:12","modified_gmt":"2026-08-14T12:38:12","slug":"us-retail-sales-unexpectedly-slump-in-july-reddit-set-to-join-sp-500","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-retail-sales-unexpectedly-slump-in-july-reddit-set-to-join-sp-500\/66523\/","title":{"rendered":"US Retail Sales Unexpectedly Slump in July; Reddit Set to Join S&#038;P 500"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US retail sales fell 0.6% in July<\/strong>, a sharp miss against expectations for a 0.1% increase, signaling a significant cooling in consumer demand.<\/li>\n<li><strong>Reddit (<a href=\"\/stock\/RDDT\">RDDT<\/a>) shares surged over 10%<\/strong> following the announcement that the social media platform will join the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> index on August 18, replacing AvalonBay Communities (<a href=\"\/stock\/AVB\">AVB<\/a>).<\/li>\n<li><strong>Applied Materials (<a href=\"\/stock\/AMAT\">AMAT<\/a>) dropped 6%<\/strong> despite reporting record quarterly revenue of <strong>$9.12 billion<\/strong>, as lofty investor expectations for AI-driven growth overshadowed the results.<\/li>\n<li><strong>The Pentagon secured major deals with Boeing (<a href=\"\/stock\/BA\">BA<\/a>) and RTX (<a href=\"\/stock\/RTX\">RTX<\/a>)<\/strong> to ramp up production of <strong>Standard Missile-3 (SM-3)<\/strong> interceptors to address critical stockpile shortages.<\/li>\n<li><strong>Tyson Foods (<a href=\"\/stock\/TSN\">TSN<\/a>) announced the closure or sale of three beef facilities<\/strong> in response to a historic cattle shortage that has significantly increased livestock costs.<\/li>\n<\/ul>\n<h2>US Consumer Spending Hits a Roadblock<\/h2>\n<p>The US Department of Commerce reported a surprise <strong>0.6% decline<\/strong> in retail sales for July, reversing a revised <strong>0.2% gain<\/strong> in June. The data came in well below the consensus estimate of a <strong>0.1% rise<\/strong>, raising concerns about the resilience of the American consumer in the face of persistent economic pressures.<\/p>\n<p>Core retail sales, which exclude automobiles, fell <strong>0.3%<\/strong>, while the retail sales control group\u2014a key metric used to calculate GDP\u2014dropped <strong>0.4%<\/strong>. This broad-based weakness suggests that <em>inflationary pressures and high interest rates may finally be curbing discretionary spending<\/em>, potentially paving the way for a more accommodative stance from the Federal Reserve.<\/p>\n<h2>Reddit Joins the S&amp;P 500 Benchmark<\/h2>\n<p>Reddit (<a href=\"\/stock\/RDDT\">RDDT<\/a>) is set to reach a major corporate milestone as it prepares to join the <strong>S&amp;P 500<\/strong> before the market opens on <strong>August 18<\/strong>. The stock jumped <strong>10.5%<\/strong> in <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">pre-market trading<\/a> on the news, as the inclusion will force passive index funds to purchase billions of dollars worth of shares to match the index&#39;s composition.<\/p>\n<p>The social media company will replace AvalonBay Communities (<a href=\"\/stock\/AVB\">AVB<\/a>), which is exiting the index following its merger with Equity Residential (<a href=\"\/stock\/EQR\">EQR<\/a>). Analysts noted that while the &quot;index effect&quot; has moderated in recent years, the move provides Reddit with <em>enhanced liquidity and institutional visibility<\/em> just months after its initial public offering.<\/p>\n<h2>Tech and Defense: AI Demands and Missile Contracts<\/h2>\n<p>Applied Materials (<a href=\"\/stock\/AMAT\">AMAT<\/a>) saw its stock tumble <strong>6%<\/strong> despite posting record revenue and earnings that beat Wall Street estimates. While the company raised its semiconductor systems outlook for 2026, investors appeared disappointed by a <em>perceived lack of &quot;blowout&quot; momentum<\/em> relative to the stock&#39;s high valuation and the intense hype surrounding AI infrastructure.<\/p>\n<p>In the defense sector, the Pentagon announced a seven-year framework agreement with Boeing (<a href=\"\/stock\/BA\">BA<\/a>) and RTX (<a href=\"\/stock\/RTX\">RTX<\/a>) to accelerate the production of <strong>SM-3 Block IB and Block IIA<\/strong> interceptors. The deal aims to stabilize the supply chain and put the defense industrial base on a &quot;wartime footing&quot; following significant depletions of missile stockpiles during recent global conflicts.<\/p>\n<h2>Agricultural Shifts and Canadian Data<\/h2>\n<p>Tyson Foods (<a href=\"\/stock\/TSN\">TSN<\/a>) is restructuring its beef segment by closing facilities in <strong>Illinois and Utah<\/strong> and seeking a buyer for a third plant in <strong>Washington<\/strong>. The company is grappling with what it describes as one of the <em>most historic cattle shortages in US history<\/em>, which has forced a consolidation of operations into three primary hubs in Nebraska, Kansas, and Texas.<\/p>\n<p>North of the border, <strong>Canada\u2019s manufacturing sales<\/strong> edged up <strong>0.1%<\/strong> in June, outperforming estimates of a <strong>0.1% decline<\/strong>. Wholesale trade excluding petroleum saw a robust <strong>2.8% increase<\/strong>, suggesting that while the US consumer is pulling back, certain segments of the Canadian industrial economy remain resilient.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US retail sales fell 0.6% in July, a sharp miss against expectations for a 0.1% increase, signaling a 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