Key Consumer Sector Insights for August 14–18, 2017



Market and consumer sector performances last week

The consumer discretionary and retail sectors’ rough performances continued last week. In the week ended August 18, 2017, the consumer discretionary sector suffered after Foot Locker (FL) and Coach (COH) stock took hard falls with their dismal earnings results. Auto parts retailer Advance Auto Parts (AAP) and apparel company L Brands (LB) dragged down the sector further.

Last week, major stocks in the S&P 500 Consumer Discretionary Index fell, resulting in the index falling 1.8%. The index had a mere rise of 0.05% last week.

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On Thursday, August 17, 2017, speculation engulfed the market about Gary Cohn’s resignation as chief economic advisor to President Trump, and the S&P 500 fell 1.5%. Adding to the woes of investor sentiment was the Barcelona terror attack, which caused the markets to tumble across the United States and Europe. The S&P 500 Index (SPY) (SPX-INDEX) finished last week with a fall of 0.65%.

Consumer ETFs had another bad week. The SPDR S&P Retail ETF (XRT) was the biggest loser two weeks in a row, falling 3.7% last week. The Consumer Discretionary Select Sector SPDR ETF (XLY) fell 1.8% on a weekly basis, while the Consumer Staples Select Sector SPDR ETF (XLP) had a mere gain of 0.15%.

As of August 18, 2017, the S&P 500 Consumer Discretionary Index (8.3%) and the S&P 500 Index (8.3%) have surpassed the S&P 500 Consumer Staples Index (6.6%) on a year-to-date basis.


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