- U.S. retail sales unexpectedly fell last month, yet shares of a variety of retailers (XRT +0.8%) are outperforming the broader stock market today.
- Even shares of automakers and auto-parts dealers - which reported the steepest decline in sales of the 13 major categories the Commerce Department tracks in its report - are largely higher for the day: AAP +2.4%, GM +1.8%, BWA +1.8%, ORLY +1%.
- One potential explanation is that investors are not viewing one weak retail sales report as a sign that the U.S. consumer is set to suddenly cut down on spending in the coming months.
- Despite uncertainty around trade policy, "consumers still have a lot going for them as evidenced by longer-term trends and factors like the tight labor market," says Jack Kleinhenz, chief economist at the National Retail Federation.
- ETFs: XLY, XRT, VCR, FDIS, RTH, RETL, EMTY, IYC, IYK, FXD, UCC, RCD, SCC, PMR, WANT, UGE, PASS, SZK, FTXD, JHMC