Retail ETFs are getting harder hit than the market as a whole as a slew of profit and sales warnings pile up with the XCR XChange Conference in full swing.
While data reads showing weak store traffic and heavy promotions in the sector during the holiday shopping season have been out for a few weeks, there have also been a few surprises on the low-end with discounters and with high-end apparel sellers which has chipped away at trust in Q1 retail sales.
What to watch: A report of December retail sales is due out tomorrow. To take a pulse on the sector, back out automobiles, housing-related purchases, and furniture to see what kind of growth rate survives. The number could come in flat.