Retail sales crashed 2.8% in October, exceeding market expectations and underlining the severity of this downturn.

This from Marketwatch:

Sales were quite weak across a broad swath of the retail sector in October, an indication that the fourth quarter could be worse than the just completed third quarter, when inflation-adjusted consumer spending fell at the fastest pace in 28 years. Retail sales account for about half of consumer spending and about one-third of domestic demand. Retail sales are down 4.1% in the past year. Sales fell a downwardly revised 1.3% in September. Sales in August were also revised lower to a 0.7% decline. The dismal report confirms what the business sector has been saying: Consumer spending is falling rapidly.

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New home sales rose by 2.7% in September, according to the Commerce Department. Andrew Snyder says this is an important sign of a rebound in the property market. And that means adjusting your portfolio to include real estate investment trusts (REITs) like Post Properties (NYSE:PPS) and American Campus Associates (NYSE:ACC).

Mr Market seems to have taken in his stride today’s dismal jobs data, sending US stocks towards weekly gains.

Despite the worst monthly cut in US payrolls in five years, US stock market indexes were poised for increases of 3% to 5%, according to Dow Jones Market Watch.

The gains come ahead of next week’s round of earnings estimates.