The Market Vectors®Retail ETF (RTH) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors US Listed Retail 25 Index (MVRTHTR). The Index is a rules-based index intended to track the overall performance of 25 of the largest U.S. listed, publicly traded retail companies.
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ICSC Retail Store Sales:-0.6% W/W, vs. -0.1% last week. +2.8% Y/Y, vs. +3.4% last week. A pre-holiday lull ahead of Black Friday prompted the W/W decline, but the report still sees strong growth of +3-4% Y/Y.
As many as 138M U.S. shoppers could hit the stores next week looking for Black Friday bargains, according to today's survey by the National Retail Federation. That's 4M more than last year's forecast, and a positive sign for retailers who count on Black Friday sales to kick off the holiday shopping season.
The rise in cotton prices has been 'terrifying' and could force U.S. retailers like Gap (GPS), J.C. Penney (JCP) and Wal-Mart (WMT) to pay their Chinese suppliers as much as 30% more for clothes. The price hikes, unsurprisingly, will probably be passed along to consumers.
ICSC Retail Store Sales:-0.1% W/W, vs. +1.3% last week. +3.4% Y/Y, unchanged from last week. Despite the slight dip in weekly sales, ICSC forecasts a strong month, and expects the full-month Y/Y gain to come in at 4-5%.
Good news for both temps and the retail sector: Amazon (AMZN) is hiring 15,500 workers to fill temporary holiday jobs at shipping centers around the country. Other retailers (like KSS, M, PIR, AEO) are also increasing temporary hires, and are expected to add a total of 550K-650K jobs this holiday season.
ICSC Retail Store Sales:+1.3% W/W, vs. +0.1% last week. +3.4% Y/Y, vs. +2% last week. The strong showing was helped by cold weather which drove demand for seasonal goods. Full month sales are expected to show a solid 3-4% gain Y/Y.
July Consumer Confidence Index:50.4 vs. 50.8 expected and 52.9 prior. Present situation 26.1, vs. 25.5 prior. Expectations 66.6 vs. 71.2 prior. "Consumer confidence faded further in July as consumers continue to grow increasingly more pessimistic about the short-term outlook... retailers are very likely to face a challenging back-to-school season.”
Shopping center vacancies continued to rise in Q2, inching up to 9% from 8.9% in Q1, research firm Reis said. The pace of the deterioration appears to be slowing, but it may take until 2012 to see a recovery, and until 2016 for vacancy rates to fall to their pre-crisis lows.
Retailers score a win, as the financial reform bill will slash the "swipe fees" that credit-card companies charge merchants for every debit-card transaction. The move could save retailers at least $10B annually, and save Wal-Mart (WMT) alone as much as hundreds of millions per year.
Futures knee-jerk lower following an unexpected dip in retail sales, which will reawaken doubts of the consumer's ability to fuel a lasting U.S. recovery. S&P -0.5% to 1074. 30-year Tsy up 0.69% to 123-12. Euro -0.22% to $1.2099. Crude -1.5% to $74.31.
Retail sales likely notched an eighth straight month of gains in May as consumers took comfort in a gradually improving job market. Sales seen +0.2%, following a 0.4% rise in April; a drop in gas prices likely put pressure on the headline number. Sales due out at 8:30.
Fed's Beige Book: Economic activity continued to improve since the last report across all 12 Federal Reserve districts, although many districts described the pace of growth as "modest." Consumer and business spending picked up, the job market improved slightly, and inflation remained in check. Financial activity was little changed since the last report, published in April.