Key Consumer Sector Insights for Week of August 7–11
Market and consumer sector performances last week
The consumer discretionary and retail sectors had a rough week from August 7–11, 2017. Most of the stocks in the consumer discretionary sector suffered due to dismal second quarter results. The lower-than-expected quarterly results by department stores such as Macy’s (M) and Kohl’s (KSS) pulled down the sector’s performance.
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The S&P 500 indexes
Last week, major stocks in the S&P 500 Consumer Discretionary Index fell, resulting in the index falling 1.3%. The S&P 500 Consumer Staples Index, on the other hand, rose slightly by 0.07%, benefiting from strong results from food and beverage companies such as Tyson Foods (TSN) and Monster Beverage (MNST).
Geopolitical tensions between the United States and North Korea weighed on both the US and emerging markets last week. The week ended on Friday with the United States Department of Labor releasing lower-than-expected inflation numbers for July. The U.S. Bureau of Labor Statistics reported that the consumer price index rose 0.10% in July on a seasonally adjusted basis, which was lower than economists’ expectations of 0.20%. The S&P 500 Index (SPY) (SPX-INDEX) finished last week with a fall of 1.4%.
Consumer ETFs didn’t perform well last week. The SPDR S&P Retail ETF (XRT) was the biggest loser among sector-based ETFs, falling 3.6%. The Consumer Discretionary Select Sector SPDR ETF (XLY) fell 1.3% on a weekly basis, while the Consumer Staples Select Sector SPDR ETF (XLP) rose 0.18%.
As of August 11, the S&P 500 Consumer Discretionary Index (10.3%) has surpassed both the S&P 500 Index (9.0%) and the S&P 500 Consumer Staples Index (6.5%) on a year-to-date basis.