July 14, 2009: High Points In The U.S. Economy

July 14, 2009 4:07 p.m. EST

Washington, D.C. (AHN) - The U.S. economy received some encouraging data out of Washington on Tuesday as retail sales in June rose more than expected. Wall Street helped as well, with a major investment bank posting record earnings.

Before the stock market opened on Tuesday, the Commerce Department said retail sales rose 0.6 percent in June to $342.1 billion, which is more than the 0.4 percent predicted by economists.

The increase in June sales marks the second consecutive month of growth in the retail space. Retail sales are a widely watched economic gauge since consumer spending makes up nearly two-third of the nation's GDP.

Additionally, U.S. businesses became a bit leaner in May as business inventories fell 1 percent, the ninth straight decline as companies work off excess inventory during the recession. The declining inventories trend should enable businesses to exploit an economic recovery when it takes hold.

In corporate news, Wall Street investment banking firm Goldman Sachs posted second quarter earnings today that made it seem a banking crisis never occurred just nine month earlier.

The company posted record revenue and earnings for the period driven by robust stock and debt offering business. Goldman posted profit of $3.4 billion in the second quarter on net revenue of $13.8 billion.

Goldman's strong second quarter has certainly raised the bar for many of its peers who are set to release results later this week.