Solid U.S. retail sales bolster Fed rate hike expectations

U.S. retail sales rebounded in July as households boosted purchases of automobiles and a range of other goods, suggesting solid momentum in the economy early in the third quarter. The upbeat report from the Commerce Department on Thursday should strengthen expectations of a Federal Reserve interest rate hike as early as next month. Although another report showed a rise in new applications for unemployment benefits last week, the trend pointed firmly to a tightening jobs market.