Johnson Redbook Index rose
On June 5, retail stocks were on a roll after the release of strong retail sales data. The Johnson Redbook Index, which measures growth in US retail sales, rose 4% for the week ending June 2—compared to the same week last year.
So far, the index has averaged ~3.4% this year—compared to 2.5% in 2017. The trend has remained particularly strong in the past month with the index average being more than 4%.
The Johnson Redbook Index is a sales-weighted index of same-store sales growth year-over-year. The index covers ~9,000 stores of large US general merchandise retailers. The Johnson Redbook Index is published on a weekly basis. The index is widely used by economists to project future retail sales and consumer trends.
Who were the top movers yesterday?
The positive sentiment drove retail stocks higher yesterday. Macy’s (M), Gap (GPS), and Michael Kors (KORS) were the S&P 500 Index’s top performers. They rose 7.9%, 6.8%, and 4.9%, respectively. Kohls (KSS) and Under Armour (UAA) also rose more than 4%.
The S&P 500 Retailing Index rose by 29 points or 1.4% to 2,184 points. In comparison, the S&P 500 Index (SPY) rose by less than two points or ~0.1% to 2,748 points.