“The easiest thing to do is prepare. If you don’t, on behalf of the other market participants, we thank you.” — unknown

1. Retail Sales in U.S. Rise In August as Consumers Unshaken by Turmoil — Bloomberg, Retail sales in the U.S. climbed for a second straight month in August. The Commerce Department figures showed 0.2 percent increase in August followed a 0.7 percent gain in July that was larger than previously reported. Ten of 13 major retail categories showed increases last month, including auto dealers, restaurants and clothing stores.
2. S&P Cuts Japan Credit Rating as Abe Falls Short of Early Promise — Standard & Poor’s cut Japan’s long-term credit rating one level to A+, saying it sees little chance of the Abe government’s strategy turning around the poor outlook for economic growth and inflation over the next few years. Japan’s problems are mounting, with inflation near zero, the economy contracting last quarter and debt rising as the population ages. The International Monetary Fund estimates public debt will increase to about 247 percent of gross domestic product next year.
3. CPI Dropped In the Month of August — August Consumer Price Index fell 0.1% vs. July, its first drop since Jan as the labor dept. reported. Cheaper gas led the decline. Core CPI, which strips out food and energy, rose 1.8% vs. a year earlier for the 3rd straight month, below the Fed’s 2% target.
4. Federal Reserve Scrubs Sept. Rate Liftoff — citing “global economic and financial developments” – especially in China that could curb US growth and inflation, the Fed Reserve voted 9-1 not to raise interest rates for the first time in nearly a decode. Fed staff also cut GDP forecasts for 2016-17. Fed chief Janet Yellen said a rate hike could happen in Oct. or Dec.

The week ahead — Economic data from Econoday.com: