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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