Retail ETFs rise after spate of strong results from several brick-and-mortar players
Exchange traded funds related to the retail sector gained ground in Tuesday's intraday trading after a string of positive earnings announcements from some notable players in the industry.
SPDR S&P Retail ETF (NYSEARCA:XRT) and VanEck Retail ETF (NASDAQ:RTH) both showed gains, climbing by 2.2% and 0.7%, respectively. This came as Burlington Stores (BURL), Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO), Best Buy (BBY) and Dick's Sporting Goods (DKS) all rallied on their respective quarterly reports.
Here are those stocks with their post-results intraday gains:
Burlington Stores (BURL) +18%, Abercrombie & Fitch (ANF) +19, American Eagle Outfitters (AEO) +18%, Best Buy (BBY) +11% and Dick's Sporting Goods (DKS) +8%.
Bucking the overall trend in the sector, Dollar Tree (DLTR) posted an intraday decline, falling 9% despite a Q3 earnings beat. Shares of the low-cost retailer were dragged down by disappointing EPS forecast.
Among other retail ETFs, the Retail ETFs iShares Evolved U.S. Discretionary Spending ETF (IEDI) rose 0.7%. Meanwhile, the leveraged Direxion Daily Retail Bull 3X Shares (RETL) climbed by 6%.
The positive earnings results put pressure on the ProShares Decline of the Retail Store ETF (EMTY), which is meant as a bet against brick-and-mortar retailers. That fund suffered a decline of 1.9%.
Meanwhile, the surge in traditional store-based retailers left online providers out of the rally. The ProShares Online Retail ETF (ONLN) edged down 0.4%, while the Amplify Online Retail ETF (IBUY) slipped 0.3%.
A glance at the company's earnings results: BURL, BBY, DKS, ANF, AEO and DLTR.
Performance comparison of XRT and RTH with the broader market index:
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