Continued Higher Retail Sales Numbers Point to Strengthening Consumer Economy

From the desk of Dan Seder, CFA, CMT, CFP®

Is that stimulus check still burning a hole in your pocket or is it long gone? Excluding autos, retail sales rose 1.9% in July, ahead of the 1.2% estimate. This marked the third straight monthly gain for retail. While many have questioned the health of the consumer post-COVID, the S&P Retail index tells a different story. Year-to-date, the S&P Retail index (XRT) is up 12.2% vs. a mere 3.68% for the S&P 500 (SPY). Here’s a breakdown of the top ten holdings in XRT: