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Consumer Discretionary Select Sector SPDR ETF (XLY)

- NYSEARCA
  • Oct. 14, 2014, 3:31 PM
    • Global growth, foreign-exchange, oil, and small caps are the subject of every client inquiry, says David Kostin. His team's recommendation: Buy "American exceptionalism."
    • In Kostin's view, U.S. economy and corporate fundamentals are still strong, with economic growth expected by Goldman economists to be 3.2% next year, the fastest expansion since 2005. Europe is expected to grow just 1%.
    • What his team likes are those stocks of companies which have a high proportion of domestic sales, plus sectors like Consumer Staples (XLP -0.1%) and Discretionary (XLY +0.7%) which stand to benefit from lower oil prices (plunging again today).
    • As for small caps (IWM +0.9%), Kostin is wary, noting downward earnings revisions have boosted small cap P/E ratios even as prices have declined.
    • The list of S&P 500 names capturing two or more of Kostin's themes: GT, GM, PCLN, AMZN, CMCSA, LOW, DG, TSN, ADM, CVS, AVP, WAG, PXD, HAL, JPM, BAC, SCHW, PNC, MS, C, GNW, LNC, MET, THC, AET, UNH, ESRX, HUM, WLP, BIIB, GILD, DAL, CMI, FLR, CRM, JBL, MA, FB, MU, FSLR, VMC, MON, T.
    | 26 Comments
  • Oct. 9, 2014, 10:09 AM
    • ICSC forecasts holiday retail sales will improve 4% this year to mark the best pace of growth in three years.
    • Consumer confidence is higher than a year ago, notes the research firm.
    • The forecast is consistent with the 4.1% prediction for holiday sales from the National Retail Federation.
    • What to watch: Despite the rosy forecasts from economists, some retail analyst are wary that the consumer trend of deal/comparison shopping won't be dialed back this year even with improved headline economic numbers.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, PMR, UGE, RCD, SZK
    | Comment!
  • Oct. 7, 2014, 8:05 AM
    | 2 Comments
  • Oct. 3, 2014, 9:39 AM
    • A new study compiled by RetailMeNot and an economics professor at University of Texas could create another ripple of worry in the retail sector.
    • More than 80% of consumers polled said they use deal or offer sites during the holiday season - while 44% indicated they use the margin-pinching sites for most or all of their holiday shopping.
    • All told, RetailMeNot thinks U.S. shoppers have the potential to save more than $5B from using deal/offer websites.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, IYC, FXD, SCC, FDIS, UCC, PMR, UGE, RCD, SZK
    | 1 Comment
  • Sep. 24, 2014, 8:13 AM
    | 9 Comments
  • Sep. 16, 2014, 11:56 AM
    • ICSC reports demand trends for wholesale clubs, dollar, discount, electronics, and furniture stores were strong over the last week.
    • The weekly reading bodes well with back to school and fall apparel demand expected to "fully" kick in shortly.
    • The research firm expects retail sales to show a healthy trend of 4% to 5% growth.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, FXG, RETL, IYK, IYC, FXD, SCC, FDIS, RHS, UCC, FSTA, PMR, UGE, RCD, SZK
    | Comment!
  • Aug. 19, 2014, 9:16 AM
    • Earnings beats and solid guidance from a trio of heavyweight retailers this morning showed that a collapse in store traffic and margins isn't pervasive across the sector.
    • Retail analysts think the common theme between Dick's, Home Depot, and TJX Companies is the solid execution by management and a focused selling message.
    • ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, PMR, RCD
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    | Comment!
  • Aug. 13, 2014, 8:38 AM
    • A warning from typically-resilient Macy's (NYSE:M) on consumer spending could send a chill into the retail sector.
    • CEO Terry Lundgren says that many of the department store's customers aren't feeling comfortable about spending more in an "uncertain" economic environment.
    • That analysis from a sector bellwether indicates a crowding out effect could be in play as consumers spend freely on housing, automobiles, and travel.
    • On watch: KSS, JWN, DDS, JCP, BONT, LB, TLYS, CACH.
    • Consumer discretionary-focused ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, PMR, RCD
    | 7 Comments
  • Aug. 7, 2014, 3:00 PM
    • ICSC says the pace of retail sales growth will stay strong in August.
    • The research firm thinks back to school spending is more back-end loaded this year and retail sales will benefit from increased consumer confidence in the economy.
    • Though some big-name retailers such as Costco and Target have missed sales marks this week, there's also been some surprises from mall retailers and restaurant chains.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, IYC, FXD, SCC, FDIS, UCC, PMR, UGE, RCD, SZK
    | Comment!
  • Jul. 25, 2014, 4:14 PM
    | Comment!
  • Jul. 10, 2014, 11:39 AM
    • The reads from major retailers on the spending habits of U.S. consumers varies widely with Wal-Mart and Family Dollar warning on the low-end, while pockets of strength have been seen at department stores, some specialty retailers, and out-performers such as Costco, Kroger, and Starbucks.
    • The high level of spending on automobiles and big-ticket items has squeezed out some discretionary spending, say analysts
    • If there's one development that nearly all retailers agree on, it's that store traffic is lower as online and mobile take market share and consumers pivot toward a paradigm of efficient shopping trips from mall browsing.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, FXG, RETL, IYK, IYC, FXD, SCC, FDIS, RHS, UCC, PMR, FSTA, UGE, RCD, SZK
    | Comment!
  • Jun. 26, 2014, 11:44 AM
    • Ikea says it plans to increase the minimum wage for its U.S. retail workers by an average 17% starting next year, a decision that may add to pressure on retailers and fast-food companies that have not raised wages, particularly the largest holdouts, such as McDonald’s (MCD -0.1%) and Wal-Mart (WMT -0.7%).
    • Business opponents say raising the minimum wage would add as much as hundreds of millions of dollars to costs; Ikea is presenting the move as good for employee well-being, and says it will not raise prices to offset the new costs.
    • Earlier this year, Gap said it would raise its minimum hourly rate for U.S. employees to $9 in 2014 and $10 in 2015.
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, FXG, RETL, IYK, FXD, FDIS, RHS, PMR, FSTA, RCD, UGE, SZK
    | 22 Comments
  • Jun. 24, 2014, 12:07 PM
    • Channel checks from Deutsche Bank indicate the promotional cadence in the retail sector has been dialed back a notch from the level seen in Q1.
    • The investment firm sees less promotional activity from retail beasts Wal-Mart (WMT +0.3%) and Target (TGT +0.2%) - while department store chains such as Kohl's (KSS +0.7%), Nordstrom (JWN +0.6%), and Dillard's (DDS -0.1%) have also shown some improvement.
    • J.C. Pennney (JCP +1%) is a tougher nut to crack for DB with its radical changes in pricing strategy making the year-over-year comparison less informative.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, PMR, RCD
    | Comment!
  • May. 21, 2014, 9:35 AM
    • Retail analysts are looking at underlying factors influencing consumer demand after two of the most resilient companies in the sector missed with their latest earnings report and guided full-year EPS down.
    • Setting aside the weather, promotions, data breaches, and F/X swings which influenced some of the retail heavyweights -  TJX Companies (consumer trade-down) and PetSmart (consumer loyalty) were the U.S. bellwethers which turned in the wrong direction.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, IYC, FXD, SCC, FDIS, UCC, PMR, RCD, UGE, SZK
    | Comment!
  • May. 20, 2014, 10:21 AM
    • Amazon (AMZN +1.7%) trades higher amid a tough day in retail.
    • There's nothing concrete on the table, but some analysts think the company has been stealing some market share from major retailers in Q1 and Q2 as consumers continue to evolve their shopping habits. Staples (SPLS -10%) and Office Depot (ODP -1.5%) come to mind.
    • Starbucks (SBUX -1.3%) CEO Howard Schultz seems to have called the retail slide with his perception that a "seismic shift" toward online and mobile is beyond the tipping point (FBN interview, SBUX conference call).
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, IYC, FXD, SCC, FDIS, UCC, RHS, PMR, FSTA, RCD, UGE, PSL, PEZ, PSCC, PSCD, SZK
    | 3 Comments
  • May. 20, 2014, 9:31 AM
    • Major retailers TJX Companies, Urban Outfitters, Home Depot, and Dick's Sporting Goods are all in with quarterly reports that missed expectations.
    • Retail analysts note the sector is having a tough time shrugging off the slow traffic patterns and heightened promotional stance that afflicted store chains during the winter. Underneath one-time factors such as F/X and weather, there are still signs of a cautious and thrifty consumer.
    • More companies have lowered Q2 and full-year guidance than raised over the last two weeks.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, PMR, RCD, UGE, PEZ, PSCD, SZK
    | Comment!
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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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