By Dhirendra Tripathi

Investing.com — Stocks were mixed on Thursday heading into the last minutes of trading after a curiously strong retail sales report for August set investors adrift. 

According to the Commerce Department, July’s retail sales rose 0.7% in August. This was in contrast to the 0.8% drop forecasts. The retail sales control group – which has a larger influence on U.S. GDP – rose 2.5%. Analysts expected a drop of 0.1%.

Even with a recent upswing, the energy sector saw a 1.4% drop. The departure of Hurricane Nicholas seemed to reduce the Gulf coast production threat.

Due to strong economic data, the U.S. dollar fell and commodity prices were pushed higher by gold. 

The labor market was still under severe pressure. Initial jobless claims were slightly higher than anticipated last week.

On Friday, there is not much data and earnings. Here are three things that could affect the markets tomorrow:

1. Consumer sentiment

The preliminary reading of the U.S. for September, as reflected in the University of Michigan’s Consumer Sentiment Index, is seen improving to 72 from August’s 70.3.

2. Retail stocks

Retailers suffered during the pandemic but have been trying to stage a reopening rebound. Shares of large retailers could be lifted by strong retail sales, especially from online retailers. The SPDR® S&P Retail ETF (NYSE:) rose 1.5% Thursday. Consumers thus didn’t hold back their spending when they were supposed to.

Although sales at bars and restaurants were down, 32% of them saw an increase in Covid cases.

3. A new coffee guy on the block

Dutch Bros Inc (NYSE:) jumped another 33% in its second day of trading on the NYSE. This week, the issue price for Dutch Bros Inc was $23. It traded on Thursday at $49 and went public this afternoon.

On sales of $404.5 millions for the 12-months ended June 30, Starbucks Corporation made $6.3 Million profit. Key rivals include Starbucks Corporation (NASDAQ:), Dunkin’ and Peet’s Coffee & Tea.