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SPDR S&P Retail ETF (XRT)

- NYSEARCA
  • Oct. 17, 2013, 2:07 PM
    • The National Retail Federation projects holiday shoppers will spend 2% less than what they laid out last year for gifts.
    • While more than half of the respondents to the NRF consumer survey blamed the economy for the planned tightening, a "crowding out" effect from the stronger automobile and housing sectors is also being attributed by some economists for the dropoff.
    • The number of disappointing retail reports (PetSmart, L Brands, Wet Seal, Gap) has outnumbered the upside surprises so far this month.
    • Related ETFs: XRT, PMR, RTH, VDC
    | 7 Comments
  • Oct. 9, 2013, 6:50 PM
    • Scores of companies in nearly 200 public filings have cautioned investors that their businesses could suffer from the government shutdown, now in its ninth day.
    • J.C. Penney (JCP), Wolverine World Wide (WWW) and Humana (HUM), for example, all warned this week of potential bottom-line consequences of federal furloughs and agency closures; corporate M&A plans also appear to be on hold as executives await a return to normal.
    • Every week the government is closed trims economic output by ~$1.6B, or 0.16 percentage point for the quarter, according to research firm IHS, and "if the shutdown drags on, the effects will start to add up."
    • The last fight, in 1995-96, impacted consumer confidence; with the year-end shopping season approaching, that's critical, especially for retailers.
    • ETFs: RTH, PMR, XRT, RETL, XLP, VDC, FXG, IYK, PSL, RHS, PSCC, UGE, SZK, XLY, VCR, FXD, IYC, PEZ, RCD, PSCD, UCC, SCC.
    | 6 Comments
  • Oct. 9, 2013, 8:23 AM
    • Shares of Costco (COST) and Family Dollar (FDO) slip after the retailers report their quarterly earnings.
    • Flat traffic and pinched margins were the story at Family Dollar, while Costco showed comparable store sales strength but was hit by higher expenses than forecast.
    • Retail analysts think the early read on the sector is that budget-conscious consumers might be ruling the day.
    • Related ETFs: XRT, XRT, PMR, RTH, VDC.
    • COST -1.4% premarket, FDO -2.7%.
    | Comment!
  • Oct. 3, 2013, 2:55 AM
    • The National Retail Federation expects sales during the November-December holiday shopping period to increase 3.9% to $602.1B, with growth accelerating from 3.5% last year. However, says the NRF, a prolonged government shutdown could hurt consumer sentiment and harm sales.
    • Retail ETFs: RTH, PMR, XRT, RETL, XLP, VDC, FXG, IYK, PSL, RHS, PSCC, UGE, SZK, XLY, VCR, FXD, IYC, PEZ, RCD, PSCD, UCC, SCC.
    • Boeing (BA) has warned that deliveries of some jets could be postponed, as the FAA officials who need to approve the planes before they're handed over to customers have been furloughed. Airbus has already delayed the delivery of an A321 to JetBlue.
    • The closure is hurting small businesses that rely on federal agencies to operate or that were trying to secure government-backed loans.
    • How the shutdown is affecting United Technologies and USEC.
    | 3 Comments
  • Sep. 26, 2013, 11:21 AM
    • Telsey Advisory Group hosted a conference this week with senior management from over 60 consumer-facing companies.
    • In an interview with CNBC, analyst Dana Telsey says the common thread across the presentations was that business isn't great anywhere.
    • Outside of the automobile and housing sectors, it's hard to find sustained momentum in sales.
    • Related ETFs: XRT, PMR, RTH.
    | Comment!
  • Sep. 26, 2013, 5:24 AM
    • A Bloomberg poll shows Americans aren't counting on a major economic recovery over the next year.
    • The percentage of respondents indicating they anticipate improvement in the economy’s strength over the next year dropped to 27% after being at 39% in a poll conducted about three months ago.
    • The sag in consumer confidence helps explain the poor growth of retail sales (XRT, PMR, RTH) after auto sales and housing are backed out.
    | 7 Comments
  • Sep. 25, 2013, 2:57 PM
    • An internal warning on inventory issues at Wal-Mart (WMT -1.5%) could just be the tip of the iceberg, warns retail watcher Kristin Bentz.
    • A poor back-to-school season could force major retailers to age two sets of inventory at once.
    • If she's right, Q4 profit could slump as promotional activity takes off even higher.
    • Related ETFs: XRT, PMR, RTH, VDC
    | Comment!
  • Sep. 23, 2013, 1:56 PM
    • Research firm Challenger thinks retail holiday season hiring will come in at around 700K, a mark which falls short of last year's big jump to 751K.
    • Weak consumer confidence and a continued trend toward online purchases are both expected to keep store traffic sluggish.
    • Of the retailers reporting hiring tallies so far, Target has had the most dramatic drop.
    • Related ETFs: XRT, PMR, RTH, VDC
    | Comment!
  • Sep. 17, 2013, 8:22 AM
    • ShopperTrak estimates holiday season retail sales will rise 2.4% Y/Y on lower store traffic.
    • The firm sees electronics and appliance-store sales (BBY, CONN, HGG) outperforming, while retailers with strong e-commerce integration (M, GPS, URBN), could hold up better than peers.
    • A calendar shift this year reduces the number of shopping days between Black Friday and Christmas to 25, putting pressure on superstores (WMT, TGT, COST) to ring up sales during the shortened period.
    • Related ETFs: XRT, RTH, PMR, RETL.
    | 1 Comment
  • Sep. 8, 2013, 10:12 AM
    • Economists forecast retail sales rose 0.4% in August which will mark a slight acceleration from July's pace, although they note auto sales likely accounted for a good portion of the month's momentum.
    • The early read on September for U.S. retailers is that a continuation of weak mall traffic and a heightened promotional stance is occurring.
    • By sector, retailers with a mix of healthcare products (WAG, COST) or sitting in the sweet spot where consumer "trade down" (TJX, ROST, SIG) to their products are holding up better than many apparel sellers (AEO, ARO, LTD, GPS, M, KSS).
    • Related ETFs: XRT, RTH, PMR, RETL.
    | 7 Comments
  • Sep. 5, 2013, 10:34 AM
    • The latest round of sales reports from U.S. retailers mostly came in ahead of analyst estimate, but an increase in promotional activity from the sector could be felt down the line when quarterly bottom lines are reported.
    • The general trend of apparel sellers suffering as consumers spend on big-ticket items such as automobiles and home improvements seems to be growing stronger.
    • Related ETFs: XRT, RTH, PMR, RETL.
    | Comment!
  • Aug. 28, 2013, 10:50 AM
    • Retail traffic to U.S. stores has declined in 8 out of the last 10 weeks, according to data compiled from ShopperTrak.
    • Though a few on-trend firms such as Michael Kors (KORS +0.1%) and Express (EXPR +8.5%) are still firing on all cylinders, and a heat wave in the Midwest has had an effect, the overall trend for the back-to-school season and holiday season looks weak.
    • Analysts also think consumers are likely to pick up their reliance on deals as discretionary spending on housing and automobiles "crowds out" normal outlays.
    • Related ETFs: XRT, RTH, PMR, RETL.
    • Related stocks: APP, AEO, ANF, AZO, BBBY, BBY, BJ, CHS, COH, COST, DG, FDO, FL, GPS, HD, JCP, JNY, JWN, KSS, LTD, LULU, M, NDN, ODP, ORLY, PIR, RGS, RL, SKS, SPLS, TGT, TIF, TJX, UA, UNFI, URBN, VFC, WMT, WRC, ZLC.
    | 1 Comment
  • Aug. 21, 2013, 1:40 PM
    • Retail is in a state of "bifurcation" as on-trend luxury retailers (KORS, JWN, TIF) and home improvement specialists (HD, LOW) thrive, while heavyweight merchandise retailers (WMT, TGT, COST), mall-based apparel chains (AEO, ARO, LTD), and discounters (DG, DLTR, FDO) disappoint.
    • As execs with Target noted during the firm's earnings call this morning, consumers seem more than happy to buy new automobiles and fix up their houses - but have tightened up on toothbrushes, socks, and soap.
    • A few companies - through some good luck and solid execution - sit in a consumer demand sweet spot. Ross Stores (RST), TJX Companies (TJX), and Subaru (FUJHY.PK) come to mind.
    • Related ETFs: XRT, RTH, PMR, RETL.
    | 4 Comments
  • Aug. 15, 2013, 7:37 AM
    • The warning signs have been out for a few weeks, but Wal-Mart's (WMT) Q2 report confirms that consumers in the U.S. have been pulling back.
    • Though the excuses from companies vary - weather, auto purchases, payroll tax hike - the trend toward softer discretionary spending on lower traffic remains consistent.
    • Sector alert: In addition to missing analyst estimates, Wal-Mart also showed a jump in inventory levels in Q2 and warned on emerging markets.
    • On watch: Costco (COST), PriceSmart (PSMT), Target (TGT)
    • Related ETFs: XRT, RTH, PMR, RETL.
    | 1 Comment
  • Aug. 12, 2013, 11:14 AM
    • Earnings reports this week from Wal-Mart (WMT +0.6%), Nordstrom (JWN +1.9%), and Macy's (M -0.9%) have heightened importance due to the storm clouds which seem to be gathering over consumer spending for the second half of the year.
    • What to watch: Wal-Mart's forecast for Q2 same-store sales is fairly wide at 0% to 2%, a dip into negative territory could turn sentiment south in a hurry. The word "promotional" could spook investors of Macy's and Nordstrom, while commentary from all three retailers on early back-to-school sales trends will be critical for sentiment sector-wide.
    • Related ETFs: XRT, RTH, PMR, RETL
    | 1 Comment
  • Aug. 8, 2013, 9:51 AM
    • Taken as a group, the retailers reporting July sales figures today missed analyst estimates as lower traffic in stores and a heightened promotional stance in the sector took a toll.
    • Despite the sub-par performance from Costco, Aeropostale, and others - the S&P Retail ETF (XRT) is up 0.7% to take back some ground lost during the tough retail week.
    | Comment!
XRT vs. ETF Alternatives
XRT Description
The SPDR® S&P® Retail ETF seeks to replicate as closely as possible, before expenses, the total return performance of the S&P Retail Select Industry® 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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