S&P 500 Vs. Consumer

The S&P 500 ($SPY) continues to come under selling pressure but consumer names stay relevant as ($XLY) continues to stay positive.

In the last week I have had Consumer Discretionary stocks: Macy’s ($M), Kohls ($KSS), and Coach ($COH), all firmly on up-swing of almost 3 percent in the last week. With these stocks showing strength – when the general market is not – speaks to the strength of the consumer, as well as these stocks themselves.

When the market has not yet firmed up and resume it’s move to the upside (be patient), these stocks are poised to lead the way.

This sector is not without it’s fault lines. One bad sales report in the upcoming weeks, and continued weakness in the overall market, could wipe out the leadership of the Consumer Dictionaries. But, if the madness at Macy’s is any indicator, I expect the leadership to continue.

See you next time at the Corner!