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Consumer Discretionary Select Sector SPDR ETF (XLY)

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  • Dec. 11, 2013, 9:25 AM
    • The National Retail Federation issues a statement in which it says it approves of the early (relatively) short-term budget agreement in Congress. The organization says it urges a quick passage of the legislation.
    • The retail industry faces a significant risk if a budget stalemate were to occur. A swipe of President Obama's pen on the spending bill could offer some late holiday season support to consumer sentiment.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, IYC, SCC, FXD, UCC, PMR, UGE, RCD, FDIS, SZK, PEZ, PSCD
    | Comment!
  • Dec. 10, 2013, 8:19 AM
    • The shopping lull right after the Black Friday/Cyber Monday period could be even more pronounced this year than usual, according to channel checks.
    • Consumers mired in deal fatigue and a blast of wintry weather across a good portion of the U.S. has kept store traffic below expectations.
    • It's not good news for a retail sector stuck with inventory it needs to move in the midst of a highly-promotional atmosphere.
    • The narrowed window for holiday shopping due to the apparent consumer respite could boost e-commerce activity. Watch the usual suspects: AMZN, EBAY, FDX, UPS.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ
    | 1 Comment
  • Dec. 4, 2013, 3:41 PM
    • Retail analysts are wadding up some of the earlier forecasts from the National Retail Federation and ShopperTrak calling for 3%-4% holiday sales growth as more evidence pours in that Q4 could be rough for retailers.
    • ConvergEx Group's Nick Colas has one of the more dire reads on the weakening sales trends, saying negative holiday sales growth wouldn't be a shocker.
    • What to watch: There's a growing consensus that shoppers equipped with mobile devices and heightened awareness of flash sales sites are more deal-savvy than anticipated. Add that to the pressing inventory issues apparel sellers face and it looks like promotional activity won't let up.
    • Related ETFs: XLY, VCR, IYC, SCC, FXD, UCC, RCD, FDIS, PSCD, PEZ.
    | Comment!
  • Dec. 4, 2013, 10:10 AM
    • A negative report from Express (EXPR -20.7%) on Thanksgiving week sales isn't going unnoticed by apparel peers.
    • The comments from execs with Express mirror some of the concerns of retail analysts on promotional activity in the sector and sluggish foot traffic. Earlier: Nomura warns on inventory challenges.
    • Related ETFs: XLY, VCR, FXD, RCD, FDIS, PSCD, PEZ
    • Decliners: Francesca's (FRAN) -2.3%, Gap (GPS) -1.6%, Destination XL (DXLG) -1.4%, Pacific Sunwear (PSUN) -3.2%, Buckle (BKE) -1.1%, American Eagle Outfitters (AEO) -2.5%, Aeropostale (ARO) -3.1%, American Apparel (APP) -1.7%, Abercrombie & Fitch (ANF) -1.9%.
    | Comment!
  • Dec. 3, 2013, 3:43 AM
    | 3 Comments
  • Dec. 2, 2013, 2:24 AM
    • The amount of money that consumers spent over the Thanksgiving weekend is estimated to have slipped 2.7% to $57.4B, the National Retail Federation says.
    • The drop is in contrast to estimates that Thanksgiving and Black Friday sales at brick-and-mortar stores rose 2.3%.
    • The average consumer spent $407.02 over the whole weekend, down 3.9% from last year.
    • The number of shoppers increased to 141M people from 139M.
    • The fall in spending came after retailers warned of a difficult holiday season and was due to the aggressive bargains on offer, a trend that is expected to continue.
    • However, the NRF maintained its forecast that retail sales will grow 3.9% for the whole holiday whole season.
    • Online sales climbed 17.3% on Thanksgiving and Black Friday, ComScore estimates, noting that the latter day attracted a record $1.2B in spending. The research firm expects Internet sales to rise 16% for the whole of the holiday season.
    • The most visited sites on Black Friday were those of Amazon (AMZN), eBay (EBAY) Walmart (WMT), Best Buy (BBY) and Target (TGT).
    • Total e-commerce sales hit $20.6B in the first 29 days of this holiday season, up 3.1% from last year, although this year includes more days.
    • Today is Cyber Monday, which the NRF reckons will attract 131M shoppers vs 129M last year. But as with Black Friday, Cyber Monday has started a day early, with J.C. Penney (JCP) and Macy's (M) among those who began related promotions yesterday. Target has gone further and created "Cyber Week."
    • More on Thanksgiving sales.
    • Tickers: FDO, DG, DLTR, FIVE, TGT, SHLD, BIG, GME, COH, GPS, LULU
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ
    | 3 Comments
  • Dec. 1, 2013, 1:38 AM
    • Thanksgiving and Black Friday sales at brick-and-mortar stores rose 2.3% on year to $12.3B, ShopperTrak estimates.
    • The research firm reiterates its forecast that sales for the whole of the holiday season will increase 2.4%, the weakest growth since 2009.
    • Foot traffic for both days grew 2.8% to over 1.07B store visits.
    • Online sales +20% on Thanksgiving and +19% on Black Friday, says IBM.
    • Mobile traffic accounted for almost 40% of all online visits on Friday. Mobile sales rose to 26% of total online sales on Thursday and were around 22% on Friday.
    • Increased store openings on Thanksgiving seem to have eaten into sales on Black Friday, while online transactions again took business away from physical purchases.
    • Anecdotal evidence suggests that consumers came with plans of what they wanted to buy, with the result that there was much less impulse shopping. (PR)
    • More on Thanksgiving Black Friday sales.
    • Tickers: AMZN, EBAY, FDO, DG, DLTR, FIVE, TGT, BBY, WMT, SHLD, BIG, GME, COH, GPS, LULU, JCP, M.
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ
    | 17 Comments
  • Nov. 29, 2013, 3:31 AM
    • As has become an American tradition as ensconced as the Thanksgiving turkey, shoppers formed long queues in front of retail stores yesterday, with some even camping out, ahead of the doors opening for the Black Friday sales, which once again began on a Thursday.
    • J.C. Penney (JCP) and Macy's (M) opened on Thanksgiving for the first time, while Kmart (SHLD), Old Navy (GPS) and Lord & Taylor opened in the morning.
    • The National Retail Federation has forecast that up to 140M consumers will go shopping over the long weekend, up a bit from 139.4M last year. IBISWorld has projected that total sales through Cyber Monday will rise 2.2% to $40.5B.
    • Mobile traffic increased over 31% yesterday as smartphones accounted for more than 23% of all Internet traffic. By 6 pm, online sales were up 10% over last year.
    • To keep the crowds calm, Wal-Mart (WMT) handed out wristbands, Best Buy (BBY) used a ticketing system, and Target (TGT) had security staff ride segways in the parking lots to increase their visibility.
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ
    | Comment!
  • Nov. 26, 2013, 11:15 AM
    • E-commerce sales this holiday season will rise 14% to 17% this year to top the marks of the last three years, forecasts Jefferies. Cyber Monday sales are tapped to see +20% Y/Y sales growth.
    • The ongoing channel shift away from brick-and-mortar becomes even more pronounced when auto, restaurants, and gas are backed out of retail sales tallies. Apparel sellers are forecast to be the hardest hit, although on-trend names such as Under Armour (UA), Macy's (M), Gap (GPS), and Lululemon (LULU) should outperform.
    • The strong Cyber Monday rush could hurt foot-traffic reliant chains such as TJX Companies (TJX), J.C. Penney (JCP), Barnes & Noble (BKS), Ultra Salon (ULTA), and DSW (DSW) - according to some trends dug up by Placed.com.
    • The positive read on e-commerce sales bodes well for Amazon (AMZN), Retailmenot (SALE), eBay (EBAY), Overstock. com (OSTK), and Blue Nile (NILE) - although high expectations are already likely factored into share price.
    • Related ETFs: XLY, VCR, IYC, SCC, FXD, UCC, RCD, FDIS, PSCD, PEZ.
    | 3 Comments
  • Nov. 26, 2013, 10:19 AM
    • There's plenty of economic data to mull over, but Treasurys are taking their cue from an unexpected decline in Consumer Confidence in November - this despite (or because of) the government returning to work and a stock market that won't quit. Those with good memories will remember the big drop in October was attributed to the government shutdown and chatter about default.
    • The Expectations Index also declined - to 69.3 from 72.2.
    • "With such uncertainty prevailing, this could be a challenging holiday season for retailers," says The Conference Board's Lynn Franco.
    • TLT +0.4%, TBT -0.8%, and the 10-year Treasury yield is off 3 bps to 2.70%.
    • Treasury ETFs: TBT, TLT, TMV, TBF, EDV, TTT, TMF, TLH, ZROZ, SBND, DLBS, VGLT, UBT, TLO, FSA, LBND, TENZ, TYBS, DLBL
    • Retailing ETFs: XLY, XRT, VCR, RTH, RETL, PEJ, IYK, IYC, SCC, FXD, UCC, PMR, UGE, RCD, SZK, FDIS, PSCD, PEZ
    | 6 Comments
  • Nov. 26, 2013, 4:57 AM
    • Consumers who think they'll be getting huge discounts on Black Friday might want to think again. In the words of the WSJ's Suzanne Kapner, "those bargains will be a carefully engineered illusion."
    • Retailers and suppliers first work out the lowest price they can sell a product at and still make the profit they want, and then they jack up the "suggested retail price" so that the retailer can later offer a big discount.
    • Another tactic is for stores to raise selling prices just before the holiday season discount period kicks in.
    • Retailers: WMT, JCP, M, SHLD, JOSB, MW, KSS, BBY, TGT, HD
    • ETFs: XLY, XRT, VCR, RTH, RETL, PEJ, IYK, FXD, PMR, UGE, RCD, SZK, PSCD, FDIS, PEZ
    | 10 Comments
  • Nov. 23, 2013, 2:27 PM
    • "The U.S. economy might be limping along, but many consumers have broken into a sprint," Jacqueline Doherty writes, in what seems like a rather paradoxical passage considering that consumer spending accounts for around two-thirds of U.S. economic output.
    • Doherty cites an October retail sales print that came in ahead of consensus, NRF's expectations for a healthy Y/Y increase in holiday sales, and a hefty, market-beating return for the S&P Retail Select Industry index as evidence of "improvements in the consumer's fortunes."
    • Still, Barron's thinks some stocks, like Michael Kors (KORS) and Restoration Hardware (RH), may have limited upside after big runs.
    • Among retail stocks listed as "bargains": Bed Bath & Beyond (BBBY), Home Depot (HD), and Macy's (M).
    • Retail ETFs - XLY, VCR, FXD, IYC, PEZ, RCD, PSCD, UCC, SCC, RTH, PMR, XRT, RETL
    | 3 Comments
  • Nov. 21, 2013, 8:50 AM
    • Multiple expansion was behind stock gains this year, but next year it'll have to be earnings and money flow rather than further valuation re-rating, says Goldman's David Kostin, reiterating his cautious 1,900 end-of-2014 target for the S&P 500 (SPY).
    • Margins are key, and Goldman's forecast is the "greatest investable gap relative to consensus expectations.” The bank expects 8.9% in 2014 and 9% in 2015 vs. the Street at 9.5% and 10.1%, respectively. Every 50 basis point swing in margins translates into a swing of about $5 per share in EPS.
    • Four recommended strategies: Pick growth (IWF) over value (IWD), firms investing in capex, companies with high buyback yields (seems contradictory with previous), and stocks with high operating leverage.
    • As for sectors, Goldman is favoring IT (VGT), consumer discretionary (XLY), and industrials (XLI) vs. underweighting consumer staples (XLP), utilities (XLU, IDU), and telecom (IST).
    • S&P 500 ETFs: SPY, SH, SSO, SDS, IVV, SPXU, UPRO, VOO, RSP, RWL, EPS, BXUB, TRND, SFLA, BXUC, BXDB
    | 1 Comment
  • Nov. 15, 2013, 8:18 AM
    • Paul Tudor Jones' Tudor Investment in Q3 greatly boosted its holdings in the Consumer Discretionary Select SPDR (XLY), purchasing 3.6M shares to bring the total owned to 4.1M. The firm also opened a 2.8M share holding in the iShares MSCI Emerging Markets ETF (EEM).
    • No longer a part of the portfolio are the Financial SPDR (XLF), Industrial SPDR (XLI), and the Energy SPDR (XLE).
    • It's probably not too financially healthy to read a ton into these moves, as the ETF holdings could be hedges against other positions as easily as outright bets.
    • Q3 13-F
    • Q2 13-F
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  • Oct. 22, 2013, 1:25 PM
    • The mutual fund giant greatly boosts its ETF presence, rolling out 10 sector ETFs on Thursday, with BlackRock (BLK) - whose iShares has its own suite of sector ETFs - as the funds' sub-advisor. State Street (STT), though, is better-known for its sector offerings. Launching on Thursday - and popular existing State Street SPDR ETFs they'll be competing with:
    • Fidelity MSCI Consumer Staples Index ETF (FSTA) - XLP.
    • Fidelity MSCI Consumer Discretionary Index ETF (FDIS) - XLY.
    • Fidelity MSCI Energy Index ETF (FENY) - XLE.
    • Fidelity MSCI Financials Index ETF (FNCL) - XLF.
    • Fidelity MSCI Health Care Index ETF (FHLC) - XLV.
    • Fidelity MSCI Industrials Index ETF (FIDU) - XLI.
    • Fidelity MSCI Information Technology Index ETF (FTEC) - XLK.
    • Fidelity MSCI Materials Index ETF (FMAT) - XLB.
    • Fidelity MSCI Telecommunications Services Index ETF (FCOM) - XTL.
    • Fidelity MSCI Utilities Index ETF (FUTY) - XLU.
    | 1 Comment
  • Oct. 16, 2013, 3:47 PM
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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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