The Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) rose approximately +14% over the past 30 days, driven primarily by strength in small-cap consumer discretionary stocks. Over the past quarter, PSCD advanced roughly +13%, reflecting sustained gains in the consumer discretionary sector.
Potential Federal Reserve interest rate cuts in 2026 could boost consumer borrowing and spending on big-ticket items like automobiles and home improvements, benefiting XLY's core holdings. Consumer discretionary sector faces resilience from higher-income households but risks from softening lower-income spending amid elevated inflation.
This week, global markets saw major shifts. The FTSE 100 hit a record high, while US stocks struggled amid economic uncertainties. Cryptos surged, commodities dipped, and sector performances varied. Stay ahead with key insights into market trends!
U.S. retail sales climbed higher in August, according to data from the Commerce Department. That indicates that consumer spending is showing strength despite the Delta-variant spread and supply chain issues. Retail sales rose +0.7% from the prior month to $618.7 billion in August, thereby beating the Street consensus forecast of a -0.8% decline. In July, retail sales fell -1.1% vs. a prior...
Consumers have changed their preferred living arrangements and that has created an increase in the demand for single-family homes.
Because of the increase in demand for homes, the stocks of homebuilders have rallied sharply since last March.The SPDR S&P Homebuilders ETF (XHB) was below $25 at its low in March and it recently moved above the $60 level.
The COVID-19 pandemic is creating demand as consumers are perhaps reevaluating whether they want to live in a building with hundreds of other people.
We are also seeing companies shift their policies to allow more people to work remotely.Earlier this week Microsoft announced that it was permanently changing its policy and that many workers would be allowed to work remotely.
The shift in housing preferences has caused the homebuilding stocks to rally sharply in the last six months or so.
The housing industry has been pointing to a recovery for several months now and with the Fed expected to cut interest rates at the July FOMC meeting that should only help the turnaround.The swings within the channel have been good for 8% to 12% upward moves and they have started with the stochastic readings in oversold territory and then making a bullish crossover.
The Tickeron Trend Prediction Engine generated a bullish signal for the ETF on June 28.
Sales of new U.S. homes sank 6.9% in April, mostly influenced by a decline in the sale of homes worth less than $300,000. The Commerce Department said that new homes sold at a seasonally adjusted annual rate of 673,000 in April, down from 723,000 in March.However, year-to-date home sales are running 6.7% above the pace set in 2018.
Buyers have been helped by lower mortgage rates and a solid job market.
Those two factors led to a selloff in a number of housing stocks and it caused the SPDR S&P Homebuilders ETF (NYSE: XHB) to fall sharply.The ETF did do something different from the rest of the market over the last three and a half months though—it formed an upward sloping trend channel.
We see on the daily chart how the highs from February, April, and May form the upper rail while the low from March and the recent low form the lower rail.
In the strong reversal on May 10, many stocks and ETFs reversed from losses to gains throughout the day.One ETF in particular that caught my attention was the Consumer Discretionary Select Sector SPDR (NYSE: XLY).
U.S. retail sales unexpectedly fell in February, but a rebound in factory activity in March and strong increase in construction spending offered hope the economy was not slowing as sharply as previously feared.
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Domestic construction spending picked up in November on the back of a surge in home building, particularly, apartment construction.
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The energy sector has led the way during this rally, but the consumer discretionary sector has the second biggest gain at 13.7% over the 13 trading days in question.
While the rally has likely made investors more comfortable, they might not want to get too comfortable as some of the sector ETFs and index ETFs are starting to hit potential resistance points.One sector ETF that is hitting a possible resistance point is the Consumer Discretionary Select Sector SPDR (NYSE: XLY).
Chinese consumers may have soured on some American products, like iPhones, but they have only sweetened on U.S. residential real estate.
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There's been little yuletide cheer for the retailers.
The XRT retail ETF is down 17 percent this month, tracking for its worst December since its inception in 2006.
One market watcher says indiscriminate selling may have unfairly taken retail down.READ MORE...
The National Association of Home Builders/Wells Fargo Housing Market Index dropped to 56 from 60 based on declines in sales, expectations and buyer traffic.
“We are hearing from builders that consumer demand exists, but that customers are hesitating to make a purchase because of rising home costs,” NAHB Chairman Randy Noel, said in a statement.“However, recent declines in mortgage interest rates should help move the market forward in early 2019.”
consumer spending, which accounts for 70 percent of the economy, experienced positive growth in June – the fourth-straight month of its advance.
According to Commerce Department figures released on Tuesday, consumer spending grew +0.4% in June.Household expenses on services, adjusted for inflation, rose 0.4 % (after a +0.1% increase in prior month).
Consumer spending’s strong advance corresponds with a solid labor market and lower taxes.
employment costs’ year-over-year increase in Q2 is its fastest in almost 10 years.
At 2.8%, the year-over-year growth in employment cost index, as released by the U.S. Labor Department, is the most since Q3 2008.Benefits costs climbed 2.9%, the most since Q4 2011.
Demand for labor increased particularly in the manufacturing, construction and service-related industries.
The U.S. economy grew at 4.1% (annualized rate) in Q2 2018 - the fastest pace in four years.
Contributing to the record growth was nonresidential business investment (with 7.3 % growth) and consumer spending (with 4% increase).
The U.S. Commerce Department also revised upwards the previous quarter’s growth figures – Q1 2018’s was 2.2% (up from from previous estimate of 2%).Nomianal GDP as of Q1 topped $20 trillion, per latest estimates by the Department.
On a year-over-year basis, Q2 GDP climbed 2.8%, slightly below U.S. President Donald Trump’s target of 3%.
At least new home sales missed most analyst’s expectations.
Here are the hard numbers: the new home sales decreased 5.3% month-over-month in June to a seasonally adjusted rate of 631,000.But what is important is that the June decline is the largest monthly drop since December – and the prices declined as well.
The median sales price decreased by 4.2% year-over-year to $302,000 (Bay Area residents – do not laugh – these new buyers were not buying garages – but real houses).