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:
Name |
Weight (%) |
|
1 |
Overstock.com Inc. |
5.15 |
2 |
Lithia Motors Inc. Class A |
2.17 |
3 |
Carvana Co. Class A |
1.86 |
4 |
Wayfair Inc. Class A |
1.82 |
5 |
L Brands Inc. |
1.81 |
6 |
Stamps.com Inc. |
1.74 |
7 |
Etsy Inc. |
1.73 |
8 |
Big Lots Inc. |
1.60 |
9 |
AutoNation Inc. |
1.54 |
10 |
Camping World Holdings Inc. Class A |
1.53 |