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Consumer Discretionary Select Sector SPDR ETF (XLY)

- NYSEARCA
  • Sat, Jan. 17, 8:28 AM
    • Up for discussion is not necessarily where oil prices are going (who knows?), but the effect of the recent plunge in price on the economy.
    • Summing up the bear case is Felix Zulauf who says It'll hurt the economy dramatically thanks to lower capital spending, and he notes a lot of oilfield jobs are high-paying ones. Consumers will benefit from lower energy costs, but will save the money instead of spending it. If lower oil prices benefit consumer discretionary spending, says Marc Faber, why did 89% of S&P consumer discretionary companies (NYSEARCA:XLY) offering Q4 guidance issue negative guidance?
    • Those are lagging figures, says Mario Gabelli, reminding the big collapse in prices only came around Thanksgiving and the effects are just beginning to show up in the form of lower credit card statements. "I talk to the guys who are pumping gas, and they say the consumer is buying more beer."
    • Also on the bullish side is Abby Cohen, who reminds the transportation (NYSEARCA:IYT) and utility companies (NYSEARCA:XLU) are major consumers of energy, and her team at Goldman sees the oil decline as boosting S&P 500 (NYSEARCA:SPY) profits this year.
    • Barron's Roundtable Part 1
    | Sat, Jan. 17, 8:28 AM | 47 Comments
  • Fri, Jan. 16, 5:57 PM
    • Frustrations are mounting over stalled contract negotiations between West Coast dockworkers and port owners, prompting 175 industry groups representing agriculture, manufacturing, retailers, and other import/export operations to send a letter to the two sides urging them to solve their differences and agree to a contract.
    • While both sides agreed earlier the month to use a federal meditator, the latest public sniping has raised fears that the ports are heading toward a shutdown, which some say could cost the economy $2B/day if it lasts 20 days.
    • Midwest manufacturers have had to slow and even stop production due to delays in receiving components, and retailers are experiencing delays in early spring merchandise, including products for Valentine’s Day and Easter; the impact on the agricultural sector also has been dramatic, hurting producers from Washington apple growers to Idaho potato farmers.
    • A Cowen report this week said that while lower gas prices could boost consumer spending, retailers face increased shipping costs due to the port slowdown.
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC
    | Fri, Jan. 16, 5:57 PM | 1 Comment
  • Thu, Jan. 15, 9:52 AM
    • Though lottery sales are highly volatile as large jackpots attract attention sporadically, there's a bit of evidence that some of the extra cash in the pockets of U.S. consumers due to lower gas prices is heading in that direction.
    • Yesterday, the report on retail sales for December missed the mark of analysts in showing a month-over-month decline.
    • The NRF says holiday spending was up 4% Y/Y, but that's roughly the same mark the group predicted in the summer before the sharp drop in oil prices.
    • Data dive: Lottery sales on Powerball and Mega Millions.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, PMR, RCD
    | Thu, Jan. 15, 9:52 AM | Comment!
  • Wed, Jan. 14, 9:54 AM
    • The National Retail Federation projects holiday sales rose 4.0% Y/Y.
    • The mark is just shy of the 4.1% forecast from the industry group.
    • Earlier today, a report on Retail Sales showed +3.2% Y/Y growth in December with a slide in sales at gas stations a factor.
    • Savvy retail analysts have been pointing out for months that holiday spending was pulled forward this year, making the M/M drop in retail sales for December a bit easier to digest.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, RCD, UGE, SZK
    | Wed, Jan. 14, 9:54 AM | Comment!
  • Thu, Jan. 8, 8:18 PM
    • Holiday retail sales rose 4.6% vs. expectations for a 3.8% lift, according to a read from ShopperTrak. The growth rate is the highest since 2005 for the period.
    • The rush of positive reports from retailers on holiday sales comes off of some beaten-down expectations, notes Chain Store Age.
    • Concerns on mall traffic, a West Coast port slowdown, and a frenzied level of promotions drove consensus estimates lower before some macroeconomic factors improved and $2 gas entered the scene.
    • A cross-section of retailers that surprised on the upside includes Barnes & Noble, Pier 1 Imports, Walgreens, Urban Outfitters, and Sonic.
    • What to watch: Costco (NASDAQ:COST) put up a 5% comp for December, putting some pressure on Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) to show signs of late-quarter strength. Signs of weakness at dollar stores (DG, DLTR, FDO, FIVE) and electronics chains (HGG, CONN, BBY) are a concern. Retailers seen as on-trend for the holiday season include Foot Locker (NYSE:FL), Lululemon (NASDAQ:LULU), and Williams-Sonoma (NYSE:WSM).
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, UCC, PMR, UGE, RCD, SZK
    | Thu, Jan. 8, 8:18 PM | 12 Comments
  • Tue, Jan. 6, 11:29 AM
    • Specialty retail is set up to see a strong year, according to Jefferies analyst Randal Konik.
    • The sector enters the year in a better position than in 2014 with inventory clean and the macroeconomic backdrop looking supportive.
    • Comp sales will lag a string of weak quarters and lower cotton prices will filter down to the bottom lines of the group, says Konik.
    • Specialty retailers (partial list): EXPR, ZUMZ, PSUN, ARO, AEO, ANF, CACH, CHS, NWY, BEBE, ANN, CBK, GPS, GES, PIR, BBBY, TCS, LE, VRA.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, PMR, RCD
    | Tue, Jan. 6, 11:29 AM | Comment!
  • Mon, Jan. 5, 10:13 AM
    • Online holiday sales rose 13.9% in 2014, an acceleration from the 8.5% growth seen in 2013, according to data from IBM Digital Analytics.
    • Mobile sales were up 27% to account for 23% of total holiday online sales.
    • Though the shift in sales to online and mobile channels has been a top-line producer for retailers, it's also been a drag on margins.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, PMR, UGE, RCD, SZK
    • Previously: The free delivery gambit in retail (Jan. 03 2015)
    | Mon, Jan. 5, 10:13 AM | Comment!
  • Sat, Jan. 3, 7:51 PM
    • The intense competition in retail over free shipping policies is expected to bring some pain to Q4 margins as big box and e-commerce firms scrap for market share, warn analysts.
    • ComScore reports that free delivery on online purchases rose to 68% in 2014, up from 44% last year.
    • Amazon (NASDAQ:AMZN): 2014 shipping costs were up 32% through Q3. That mark comes before a holiday season in which the company says it saved customers a mere $2B in shipping fees.
    • Wal-Mart (NYSE:WMT): The Bentonville giant has already warned investors it will spend heavily on e-commerce and fulfillment center expansion as it eyes +30% growth in online sales. The company may have difficulty dialing back its free delivery policies, say industry insiders.
    • Target (NYSE:TGT): Wolfe Research projects a 1% shift in Target sales to e-commerce cuts into the firm's profit margin by 5 bps.
    • What to watch: Online sales rose 16% in Q3 vs. 4% for broad retail, a differential that is expected to have widened in Q4. Retailers with a sharp shift in mix to online could have trouble hitting consensus EPS estimates.
    • Related stocks: BBY, DKS, CAB, SPLS, TJX, BIG.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, UGE, RCD, PEZ, PSCD, SZK
    | Sat, Jan. 3, 7:51 PM | 45 Comments
  • Dec. 28, 2014, 2:19 PM
    • ShopperTrak reports retail sales on Super Saturday (Dec. 20) were improved this year for a majority of retailers.
    • The research firm tabulated an increase in both conversation rates and average transaction price for the key shopping day.
    • A 3.8% gain in sales for the holiday season is still within reach, forecasts ShopperTrak.
    • The read from FedEx and UPS on late-season volume has also been strong.
    • Previously: Holiday retail sales up 5.5% Y/Y (Dec. 26)
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, PMR, UGE, RCD, SZK
    | Dec. 28, 2014, 2:19 PM | Comment!
  • Dec. 26, 2014, 12:32 PM
    • MasterCard Advisors estimates U.S. retail sales from Black Friday through Christmas Eve were up 5.5% Y/Y, in-line with prior forecasts. The figure follows consensus-beating Redbook and ICSC weekly retail sales data earlier this week.
    • For its part, the National Retail Federation has forecast low gas prices and healthy macro conditions will help U.S. November/December retail sales rise 4.1% Y/Y - the period's highest growth rate since 2011's 4.8%.
    • E-commerce continues taking share from traditional retail. IBM estimates holiday season online sales rose 8.3% Y/Y, with mobile accounting for 34.8% of sales; comScore sales from Nov. 1-Dec. 21 were up 15%. A year ago, Custora estimated U.S. holiday online orders rose 12%, with mobile accounting for 29% of them.
    • Globally, eMarketer forecasts retail sales will rise 6.1% this year to $22.5T, and 6.4% next year to $23.9T. E-commerce is expected to grow 22% this year to $1.3T, and 21% next year to $1.6T.
    • ETFs: XLP, XLY, VDC,VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, PSL, UGE, RCD, PEZ, PSCC, PSCD, SZK
    | Dec. 26, 2014, 12:32 PM | Comment!
  • Dec. 23, 2014, 2:59 PM
    • The strong reads on consumer spending (ICSC, Redbook) bode well for Q4 earnings in the retail sector, note analysts.
    • Electronics sellers (BBY, HGG) and the luxury sector (RL, TIF, COH, KORS, KATE, FOSL, VRA) are viewed as being in a good position to see a December boost.
    • Companies which eased off on pulling a bulk of their sales forward with Black Friday/Cyber Monday deals are also seen as potential winners with sub-$2 gas resetting some holiday budgets.
    • Though e-commerce is expected to dazzle again this holiday season. It's not all fun and games for analysts looking at margins. The extension by Amazon (AMZN -0.1%) of its free shipping offer could be a signal that inventory levels are higher than anticipated and that the growth-at-all-costs mentality at the company is as entrenched as ever, notes Nasdaq Advisory Services.
    • The S&P Retail ETF (NYSEARCA:XRT) has doubled up the return of the S&P 500 over the last 3 months, 10.8% vs. 5.1%.
    • Previously: Retail trends to watch: Athleisure, P-E buyouts, and new online channels (Dec. 20 2014)
    • Related ETFs: XLP, XLY, VDC,VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, PSL, UGE, RCD, PEZ, PSCC, PSCD, SZK
    | Dec. 23, 2014, 2:59 PM | 1 Comment
  • Dec. 19, 2014, 2:18 PM
    • Consumer Discretionary Select Sector SPDR (NYSEARCA:XLY) announces quarterly distribution of $0.293.
    • 30-Day Sec yield of 1.27% (as of 12/17/2014).
    • Payable Dec 30; for shareholders of record Dec 23; ex-div Dec 19.
    | Dec. 19, 2014, 2:18 PM | Comment!
  • Dec. 17, 2014, 7:41 AM
    | Dec. 17, 2014, 7:41 AM | 2 Comments
  • Dec. 15, 2014, 11:35 AM
    • While publicly traded stocks at 35% remain the most popular investment, that's down from 43% one year ago and 49% in 2012. ETFs at 25% are up from 21% one year ago.
    • The most popular equity sectors are financials (NYSEARCA:XLF) at 27%, followed by Consumer Discretionary (NYSEARCA:XLY), and Energy (NYSEARCA:XLE), both at 16%.
    • Apple (NASDAQ:AAPL) and Berkshire Hathaway (BRK.A, BRK.B) again hold the two top spots for individual picks, with the S&P 500 SPDR ETF (NYSEARCA:SPY), the Health Care SPDR (NYSEARCA:XLV), and the MSCI Emerging Markets ETF (NYSEARCA:EEM) rounding out the top five.
    • Source: Tiger 21 Member Favorites Survey
    | Dec. 15, 2014, 11:35 AM | 34 Comments
  • Dec. 12, 2014, 12:04 PM
    • A survey by Bankrate.com indicates consumers aren't quite sold on increasing spending just because gas prices have moderated.
    • 82% of respondents say they don't plan on spending more this holiday season than last.
    • Just 5% said they would boost holiday spending due specifically to the drop in gas prices.
    • Millennials were the age group with the highest percentage (28%) indicating holiday spending would increase this year.
    • The survey contradicts most economic projections for a +4% lift in holiday spending.
    • What to watch: Was the strong report on retail sales for November just a pull-forward of sales typically closer to the holiday?
    • Previously: Strongest month for retail sales since March (Dec. 11 2014)
    • Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, PMR, RCD
    | Dec. 12, 2014, 12:04 PM | 5 Comments
  • Dec. 11, 2014, 9:30 AM
    • Retail sales struck their biggest gain since March on broad strength.
    • What's working: Strong growth was seen in auto parts (PBY, ORLY, AZO, AAP, MNRO) with the broad parts category showing year-over-year sale growth of over 8% in November. Sales were up 6.8% Y/Y for health and personal care stores (ULTA, SBH, CVS, WAG, RAD) during the month.
    • What's not working: Department stores (DDS, M, SSI, BONT, SHLD, JCP, KSS, JWN) went backwards with sales off 1.1% from a year ago. No surprise, but sales at gas stations (CASY, KR, PTRY) also fell off from a year ago.
    • Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, UCC, PMR, UGE, RCD, SZK.
    | Dec. 11, 2014, 9:30 AM | 8 Comments
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XLY Description
The Consumer Discretionary Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Consumer Discretionary Select Sector Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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Sector: Services
Country: United States
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