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US Consumer Sentiment Weakened in July, Yet XLY Rose 0.31%

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Aug. 3 2015, Published 10:39 a.m. ET

US consumer sentiment weakened in July

Over the past year, consumer has sentiment largely risen in the United States. The Consumer Discretionary Select Sector SPDR ETF (XLY) gained about 3.71% last month. It has gained a good 11.19% year-to-date. In contrast, the broad market–tracking SPDR S&P 500 ETF (SPY) has returned 1.39% so far this month. It’s returned 2.39% this year.

XLY also gained 0.31% on July 31’s close, even though the final reading of the University of Michigan report indicated that consumer sentiment had weakened in July.

The consumer sector is giving mixed signals these days. While Expedia (EXPE) and Coca-Cola (KO) gained 12.85% and 12.41, respectively, Hanesbrands (HBI) was down 9.11% on the same day (July 31’s close).

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Consumer sentiment lost 3 points in July

The Consumer Sentiment Index is a monthly index that’s jointly released by the ISR (Institute for Social Research) of the University of Michigan and Thomson Reuters. The final estimate for July came out on Friday, July 31. The composite index stood at 93.1 index points in July—a three-point fall from June’s 96.1 points. US consumers saw their personal financial projections weaken in July.

The current conditions component was down to 107.2 points—a 1.7-point dip from June. The index’s expectations component also recorded a 3.7-point dip to 84.1. The overall report revealed weaker consumer sentiment in July 2015.

Let’s now move on to take a look at two key economic indicators from the Eurozone: inflation and unemployment.

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