Retail giving tech a run for its money


After a violent rally in retail, can the consumer dethrone Tech?

Five of the 10 best performing members of the S&P 500 this week are retailers or apparel names:

  • Under Armour (UA)
  • Kohl’s (KSS)
  • Macy’s (M)
  • Hanesbrands (HBI)
  • Gap (GPS)

ETFs tracking the space, like SPDR Consumer Discretionary (XLY) and S&P Retail (XRT), are also the top performing funds this week. They’re pushing all-time highs and even challenging the SPDR Technology ETF (XLK) on a year-to-date basis:

RadarScreen® showing key ETF performance this year.

It’s interesting that none of the big movers reported earnings in the last week. Instead, bullish notes from the likes of JPMorgan and Evercore ISI seems to have triggered the stampede. The analysts pretty much called a turn and said the industry is ready to rebound after several years of store closures and digital competition. Is the (AMZN) effect finally over?

Bottom line: This isn’t a trade recommendation and everyone needs to do their own homework, but you should realize it’s been a huge week for retail.

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David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.