Retail sales dropped by 0.3% in January as most analysts expects, after a decline of 0.4% in December, while excluding autos sales probably inclined by 0.2% after dropping 0.4% in December, the decline is mainly expected to take place in cars and furniture sales.

The economic activity in the United States has slowed rapidly in the 4th quarter, and it is very likely to continue slowing down more and more in the first quarter 2008, spending is declining, sales will decline accordingly, followed be less production and less employment, which describes the basic state of economic contraction.

Investors are waiting for Mr. Bernanke to give more comments tomorrow about the economy, as some economists are commenting that the economy can avoid recession, others are saying that even with the fed's rate cuts there is still a 50% chance that we will go into a recession, while Paulson are making plans to help reduce official foreclosures, and Mr. Warren Buffet is trying to rescue bonds issuers.

Mr. Bernanke has a mission to do for markets now, the gossips are increasing about the possibility of a recession and more rate cuts in the economy, and we are all waiting for Mr. Chairman to clarify the points and put some shape for the markets.