에 대한 최신 뉴스 VanEck Retail ETF (NASDAQ:RTH)

VanEck Retail ETF

VanEck Vectors Retail ETF

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The Fund normally invests at least 80 percent of its total assets in securities that comprise the Funds benchmark index. To be initially eligible for the Retail Index, companies must generate at least 50 percent of their revenues from retail. Retail includes companies engaged primarily in retail distribution; wholesalers; online, direct mail and TV retailers; multi-line retailers; specialty retailers, such as apparel, automotive, computer and electronics, drug, home improvement and home furnishing retailers; and food and other staples retailers. Of the largest 50 stocks in the retail industry by full market capitalization, the top 25 by free-float market capitalization (i.e., includes only shares that are readily available for trading in the market) and three month average daily trading volume are included in the Retail Index.

Amazon.Com Inc

Costco Wholesale Corp

Walmart, Inc.

Home Depot Inc/The

Lowe's Cos Inc

Tjx Cos., Inc.

Mckesson Corp

O'Reilly Automotive Inc

Cvs Health Corp

Target Corp Common Stock Usd 0.0833

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Merrill Lynch Retail HOLDRS Trust due 12/31/41

텔시 어드바이저리 그룹(Tesley Advisory Group)의 분석가들에 따르면 타깃 코퍼레이션(NYSE:TGT)과 로스 스토어스(NYSE:ROST)는 거시적인 불확실성에도 불구하고 소비자들이 계속 지출함에 따라 2분기에 더 나은 매출을 기록할 것이라고 한다.

타깃, 로스는 소비자의 탄력성을 유지하면서 더 높은 매출을 올릴 것으로 예상: 분석가들

Rotharium

Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) said on Thursday that it is significantly expanding its wellness offerings, with plans to introduce over 2,000 new items across a variety of categories, including <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n42893497/target-is-expanding-its-wellness-assortment-with-2-000-new-items-more-than-half-under-10" rel="noreferrer noopener">more than 600 exclusive products.</a>
This expansion reflects Target&#8217;s strategy&nbsp;of making wellness products more accessible and affordable, with over half of the new items priced under $10, the company said in a press release.
The company&#8217;s integrated approach spans multiple areas of wellness, from beauty and personal care to nutrition, food, and wellness technology, ensuring that consumers can curate a personalized wellness regimen.
Target&#8217;s new assortment includes emerging brands and exclusive partnerships.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/25/01/42894683/los-angeles-wildfires-stoke-investor-fears-edison-internationals-stock-ended-10-lower-on-wednesday-amid-concerns-over-possible-equipment-links-to-forest-fires" rel="noreferrer noopener">Los Angeles Wildfires Stoke Investor Fears: Edison International&#8217;s Stock Ended 10% Lower On Wednesday Amid Concerns Over Possible Equipment Links To Forest Fires</a>
In the beverage category, the retailer is introducing non-alcoholic beverages like BERO, a premium beer co-founded by actor Tom Holland. Target is also expanding its beauty and self-care offerings, with new haircare lines from Ashley Tisdale&#8216;s Being Frenshe and Blake Lively&#8216;s Blake Brown, as well as wellness gummies from Kourtney Kardashian Barker&#8216;s Lemme brand.
Additionally, Target is enhancing its men&#8217;s wellness selection with products from Dr. Squatch and Dwayne &#8220;The Rock&#8221; Johnson&#8216;s Papatui line, along with expanding its wellness technology category, introducing innovative items like SLF&#8217;s infrared red light therapy mask and Therabody&#8217;s SmartGoggles.
Target is also adding new activewear, loungewear, and sleepwear options to cater to growing wellness and self-care trends. The expanded wellness range will be available in 2025, allowing consumers to support their well-being while staying within their budget.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, TGT stock has lost over 3% in the past year. Investors can gain exposure to the stock via&nbsp;VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: TGT shares closed lower by 0.74% to $138.22 on Wednesday.
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Target's Wellness Push: Over 50% Of New Items Priced Under $10

JP Morgan analyst Christopher Horvers maintained an Overweight rating for Lowe&#8217;s Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) <a target="_blank" href="https://www.benzinga.com/quote/LOW/analyst-ratings" rel="noreferrer noopener">with a price forecast of $300.</a>
Yesterday, the company highlighted its near-term and long-term financial targets at its 2024<a target="_blank" href="https://www.benzinga.com/24/12/42445818/lowes-targets-1-billion-in-annual-savings-and-expands-store-footprint-to-drive-future-growth" rel="noreferrer noopener"> Analyst and Investor Conference</a>.
Lowe&#8217;s reaffirmed its outlook, projecting total sales between $83 billion and $83.5 billion<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> (consensus estimate: $83.34 billion)</a>.
The company expects comparable sales to decline by 3.0% to 3.5% and adjusted EPS&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42060077/lowes-q3-earnings-revenue-and-eps-beat-but-comp-sales-fall-amid-softness-in-bigger-ticket-diy-discretionary-demand" rel="noreferrer noopener">of $11.80 – $11.90 (consensus estimate: $11.89)</a>.
Lowe&#8217;s plans to unveil its next phase of Perpetual Productivity Improvement (PPI) initiatives, projected to deliver approximately $1 billion in annual cost savings.
The analyst writes that Lowe&#8217;s Analyst Day marked a subtle pivot, signaling that the infrastructure built since CEO Marvin Ellison&#8217;s 2018 arrival is now in place.
The analyst says they continue to favor LOW and write that with the shift to positive comps after three years of pullforward spending and housing headwinds, they believe a moderate 1% comp is reasonable.
The analyst views the 10 basis points of operating margin expansion per comp point and the $1 billion stock repurchase assumption as conservative.
Hoovers adds that Lowe&#8217;s is advancing self-help initiatives to boost top-line growth and margins, reducing the performance gap with Home Depot.
The industry&#8217;s duopoly and resistance to Amazon, along with a strong housing-driven long-term outlook, justify its premium valuation, adds the analyst.
Additionally, the recent decline in long-term rates is expected to boost demand, especially as existing home sales remain at 40-year lows, with potential upside from a Fed rate cut, per the analyst.
As the housing market improves, Horvers expects the company to further re-rate, especially with the 2025 guidance uncertainty cleared.
Investors can gain exposure to the stock via&nbsp;IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) and&nbsp;VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: LOW shares are down 1.41% at $264.11 at the last check Thursday.
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iShares Dow Jones US Homenstruction Index Fund

Lowe's Positioned For Growth Amid Cost Savings And Housing Recovery: JP Morgan Analyst

Lowe&#8217;s Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) highlighted its near-term and long-term financial targets at its 2024 <a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/n42432122/lowes-unveils-2025-total-home-strategy-to-drive-long-term-growth-and-market-share" rel="noreferrer noopener">Analyst and Investor Conference today</a>.
The company has introduced a standardized framework to harness generative AI, aimed at improving customer experiences and boosting productivity.
Also, the company launched the U.S. home improvement industry&#8217;s first product marketplace, partnering with new sellers and existing suppliers to expand its online assortment. This initiative strengthens Lowe&#8217;s position as a one-stop shop for all home needs.
Apart from this, in early 2025, Lowe&#8217;s will relaunch MyLowe&#8217;s Pro Rewards, a streamlined loyalty program for small-to-medium Pros.
The program will simplify earning and redeeming rewards, with Pro customers saving 5% daily on eligible purchases when using their MyLowe&#8217;s Pro Rewards Credit Card.
Moreover, Lowe&#8217;s is streamlining large Pro orders with direct supplier system integration, aiming to boost close rates and capture more Pro spend, while relying on suppliers for jobsite delivery.
FY24 Outlook: Lowe&#8217;s reaffirmed its outlook, projecting total sales between $83 billion and $83.5 billion<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> (consensus estimate: $83.34 billion)</a>.
The company expects comparable sales to decline by 3.0% to 3.5% and adjusted EPS <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42060077/lowes-q3-earnings-revenue-and-eps-beat-but-comp-sales-fall-amid-softness-in-bigger-ticket-diy-discretionary-demand" rel="noreferrer noopener">of $11.80 &#8211; $11.90 (consensus estimate: $11.89)</a>.
Lowe&#8217;s plans to unveil its next phase of Perpetual Productivity Improvement (PPI) initiatives, projected to deliver approximately $1 billion in annual cost savings.
To drive growth, Lowe&#8217;s plans to open 10-15 stores annually in fast-growing U.S. markets, building on recent successes and enhanced space productivity.
The company will also expand its rural assortments to 150 more stores, offering a one-stop shop with enhanced selections in pet, workwear, automotive, and utility vehicles.
Marvin R. Ellison, Lowe&#8217;s chairman, president and CEO, said, &#8220;As we look ahead to the expected recovery in home improvement, we are making investments to position the company for long-term growth. We are evolving our Total Home strategy to help solve our customers&#8217; total home improvement needs with more value and exceptional service,&#8221;&nbsp;&nbsp;
&#8220;At the same time, we&#8217;re building on our momentum with Pros now that we&#8217;ve reached 30% Pro penetration.&#8221;
Goldman Sachs analyst rated the company a Buy rating, <a target="_blank" href="https://www.benzinga.com/quote/LOW/analyst-ratings" rel="noreferrer noopener">with a price target of $276.</a>
The analyst estimates FY24 sales of $83.3 billion, comparable sales of -3.3%, and adjusted EPS of $11.87.
Investors can gain exposure to the stock via&nbsp;IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) and VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: LOW shares are down 0.31% at $269.28 at the last check Wednesday.
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Photo via Shutterstock.

Lowe's Targets $1 Billion In Annual Savings And Expands Store Footprint To Drive Future Growth

On Tuesday, Automotive retailer AutoZone, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>)&nbsp;reported fiscal first-quarter earnings per share of $32.52, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">Street view of $33.76</a>.
Quarterly revenues of $4.28 billion (+2.1% year over year) missed the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/g42409252/autozone-1st-quarter-total-company-same-store-sales-increase-1-8-domestic-same-store-sales-increas" rel="noreferrer noopener">analyst consensus of $4.30 billion</a>.
AutoZone said the company&#8217;s same-store sales increased 0.4% (or 1.8% in constant currency),&nbsp;while domestic sales grew 0.3%.
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The quarter&#8217;s gross profit margin was 53.0%, up 16 basis points, driven by higher merchandise margins. Operating profit decreased 0.9% to $841.1 million.&nbsp;
Under its share repurchase program, AutoZone repurchased 160 thousand shares of its common stock at an average price per share of $3,156, for a total investment of $505.2 million.
Since the inception of the share repurchase program, the company has repurchased 155 million shares of its common stock at an average price of $241, for a total investment of $37.5 billion. At the end of the first quarter, the company had $1.7 billion remaining under its current share repurchase authorization.
During the quarter, AutoZone opened 23 new stores in the U.S., 6 in Mexico, and 5 in Brazil, for a total of 34 net new stores.&nbsp;
AutoZone&#8217;s sales per average store reached $0.57 million, down from $0.58 million Y/Y. The sales per average square foot was $85, down from $86 Y/Y. Total auto parts sales reached $4.2 billion, up from $4.12 billion Y/Y.
The domestic commercial sales for the quarter reached $1.13 billion, up from $1.09 billion Y/Y.
The company had 6,455 stores in the U.S., 800 in Mexico, and 132 in Brazil, for a total store count of 7,387.
AutoZone CEO Phil Daniele was impressed with the progress in its DIY same-store sales result from the prior quarter as average ticket and traffic trends improved.&nbsp;While currency rate moves depressed reported sales and earnings growth, the international performance remains encouraging as the company focuses on opening more stores in these markets.&nbsp; AutoZone is well-positioned for growth heading into the remainder of the fiscal year, backed by its initiatives to improve customer service and grow market share, he added.&nbsp;
Autozone&nbsp;stock surged over 29% year-to-date. Investors can gain exposure to the stock through VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) and Hennessy Stance ESG ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STNC#NYSE">STNC</a>).
Price Action: AZO stock closed at $3,324.01 on Monday.
Photo via Shutterstock.
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STNC

AutoZone Q1 Misses Wall Street Marks, But CEO Sees Bright Road Ahead

Several analysts expressed views on Ross Stores, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NASDAQ">ROST</a>) third-quarter results reported on Thursday.
The company reported EPS&nbsp;of $1.48, exceeding the consensus of $1.40, while sales&nbsp;of $5.07 billion <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b42123039/ross-stores-reports-third-quarter-earnings-updates-fourth-quarter-guidance" rel="noreferrer noopener">missed the street view of&nbsp;$5.15 billion</a>.
Ross Stores expects fourth-quarter EPS of&nbsp;$1.57 &#8211; $1.64&nbsp;versus consensus of $1.67 and FY25 EPS&nbsp;of $6.10 &#8211; $6.17&nbsp;compared <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">to the street view of $6.14</a>.
BofA Securities analyst Lorraine Hutchinson reiterated a <a target="_blank" href="https://benzinga.com/quote/ROST/analyst-ratings" rel="noreferrer noopener">Buy rating on the stock with a price target of $180.</a>
The analyst writes that the company&#8217;s value-focused offerings continue to appeal to stretched consumers.
The analyst says the fourth-quarter guidance accounts for a timing shift in packaway expenses (benefiting the third quarter by $0.03) and lapping last year&#8217;s extra week, which added $0.20 to EPS and 80 basis points to OM. Hutchinson adjusted the FY24 estimate to $6.14, up 1%.
Telsey Advisory Group analyst Dana Telsey reaffirmed the Market Perform rating with a price target of $175.
The analyst writes that Ross Stores&#8217; earnings beat reflected margin tailwinds, despite topline results falling short of expectations. While some sales weakness was attributed to unfavorable weather, product assortment issues also contributed, failing to fully capture consumer interest.
Looking ahead, the company remains aware of the challenging macroeconomic environment, particularly for its low-to-moderate income demographic, which faces pressure from rising essential costs, says the analyst.
The analyst writes that although FY24 EPS guidance was raised, fourth-quarter projections fell short, underscoring persistent challenges.
Ross&#8217;s commitment to value continues to attract deal-seeking customers, but macroeconomic uncertainty and the price sensitivity of its core demographic weigh, adds the analyst.
Guggenheim analyst Robert Drbul maintained a Buy rating with a $180 price target.
The analyst says that while macro uncertainties remain, he expects Ross to sustain positive sales momentum this holiday season, driven by strength in gifting, cosmetics, and accessories, and carry this into 2025.
Drbul sees EPS estimates of $6.15 in FY24 and $6.70 in FY25, which reflects a favorable environment for Ross, supported by ample branded goods supply, a strong value proposition, and ongoing sales optimism.
Following the third-quarter revenue miss, the analyst slightly reduced the FY24 revenue forecast, factoring in persistent inflation and its impact on discretionary spending.
Goldman Sachs analyst Brooke Roach writes that they remain positive on Ross Stores. Despite weather-related comp softness and execution challenges, ROST&#8217;s strategy of offering branded value merchandise at sharper prices is gaining traction.
While this pressures merchandise margins, operational efficiencies have offset the impact. Management acknowledges ongoing macro pressures on low- to middle-income consumers but expects sequential strength in the holiday quarter, driven by gifting and seasonal items, adds the analyst.
Roach writes that additional catalysts include the appointment of a new <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/b41586044/ross-stores-names-james-g-conroy-as-next-chief-executive-officer" rel="noreferrer noopener">CEO, effective February 2025</a>.
The analyst revised the FY24, FY25, and FY26 EPS estimates to $6.19, $6.54, and $7.14 (from $6.07, $6.47, and $7.06), respectively, to account for the quarterly results, timing adjustments, and slight margin forecast updates.
BMO Capital Markets analyst Simeon Siegel kept the Outperform rating and a price target of $168.
The analyst writes that ROST delivered a bottom-line beat, driven by stronger-than-expected gross margins, despite a topline miss attributed to unfavorable weather.
Management lowered its fourth-quarter EPS guidance but reiterated comp expectations, slightly raising the FY EPS high-end by $0.03, which the analyst views as conservative.
Investors can gain exposure to the stock via Virtus ETF Trust II Virtus KAR Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMID#NYSE">KMID</a>) and VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: ROST shares are up 2.41% at $146.41 at the last check Friday.
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Movers

Virtus ETF Trust II Virtus KAR Mid-Cap ETF

KMID

Analysts See Growth Potential In Ross Stores Amid Holiday Season Optimism: Details

Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) shares are trading slightly higher following strong earnings from top peer Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>).
Today, Walmart announced third-quarter results and raised its fiscal-2025 guidance. The retailer reported adjusted EPS of 58 cents, beating the consensus of 53 cents. Sales were $169.59 billion, up <a href="https://corporate.walmart.com/content/dam/corporate/documents/newsroom/2024/11/19/walmart-releases-q3-fy25-earnings/q3-fy25-earnings-release.pdf" target="_blank" rel="noreferrer noopener">5.5</a>% year over year or 6.2% (at constant currency), <a href="https://www.benzinga.com/24/11/42060801/walmart-tops-q3-estimates-ecommerce-growth-shines-with-27-lifts-full-year-forecast" target="_blank" rel="noreferrer noopener">beating the consensus of $167.72 billion. </a>
For FY25, Walmart raised its adjusted EPS outlook to $2.42 – $2.47 (from $2.35 – $2.43), vs. the consensus of $2.45. Walmart boosted FY25 net sales (at constant currency) growth guidance to 4.8% – 5.1% from 3.75% – 4.75% earlier.
Meanwhile, Target will report its third-quarter results on Wednesday, November 20, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n42060504/target-corporation-to-webcast-3rd-quarter-earnings-conference-call-on-wednesday-november-20-2024" rel="noreferrer noopener">2024, at 7:00 a.m. central time.</a>
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Last week, Target announced its store hours for Black Friday week <a target="_blank" href="https://www.benzinga.com//node/41895063" rel="noreferrer noopener">and the holiday season.</a>
On Friday, November 29, Target will open its doors early at 6 a.m. local time, offering exclusive items such as the &#8220;Taylor Swift &#x7C; The Eras Tour Book&#8221; and &#8220;The Tortured Poets Department: The Anthology&#8221; on CD and vinyl.
These items will be available only at Target, along with top deals across the store. Special offers will be available in-store, online, and through the Target app, providing shoppers with great value for their holiday purchases.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, TGT stock has gained over 20.76% in the past year. Investors can gain exposure to the stock via&nbsp;SPDR Select Sector Fund &#8211; Consumer Staples (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) and&nbsp;VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: TGT shares are trading higher by 0.57% to $157.46 at last check Tuesday.
Photo via Shutterstock
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What's Going On With Target Stock Today?

J. P. Morgan analyst Christopher Horvers expressed views on Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) third-quarter earnings&nbsp;results reported today.
The company reported sales growth of 6.6% year-over-year to $40.217 billion, beating the consensus estimate of $39.173 billion and adjusted EPS of $3.78,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/41902698/home-depot-q3-earnings-revenue-and-eps-beat-lifts-full-year-forecast-despite-customer-traffic-dip" rel="noreferrer noopener">beating the consensus of $3.64</a>.
Home Depot raised its FY24 sales guidance from $156.49 billion – $158.01 billion to $158.78 billion vs.<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> the $157.33 billion consensus</a>.
The company now expects Adjusted EPS of $15.10 (representing a decline of approximately&nbsp;1%&nbsp;from&nbsp;$15.25 in FY23) vs. the consensus of $14.84.&nbsp;
The analyst, with an <a target="_blank" href="https://www.benzinga.com/quote/HD/analyst-ratings" rel="noreferrer noopener">Overweight rating</a>, notes that the EPS forecast appears to be somewhat conservative.
Overall, Horvers says that there is still more to understand about the business&#8217; current state, but excluding the 50-basis-point hurricane boost, the U.S. business showed a decline of -1.7%, an improvement from the -3.4% in the first half of 2024.
The company is essentially aligning with Street expectations for a ~-2% decline in the fourth quarter, adds the analyst.
The analyst writes that while the extended outdoor season likely helped, the pace of deterioration should continue to slow into 2025, as the share-of-wallet headwind has eased and wages grow by 3.5%-4%, supporting baseline consumption in the category.
Therefore, the Street&#8217;s +2% comp forecast for 2025 seems reasonable, adds the analyst.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Consumer Focused ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>) and VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: HD shares are down 0.44% at $406.51 at the last check Tuesday.
Photo: Sockagphoto via Shutterstock
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<li><a href="https://www.benzinga.com/trading-ideas/technicals/24/11/41907482/stock-of-the-day-home-depot-flashes-buy-signal-as-earnings-beat-expectations" target="_blank" rel="noreferrer noopener">Stock Of The Day: Home Depot Flashes Buy Signal As Earnings Beat Expectations</a></li>
</ul>

Home Depot's Earnings Beat Sets Conservative Tone for FY24, J.P. Morgan Predicts Slowing Deterioration Ahead

Alice Walton, daughter of the late Sam Walton and heiress to the Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) fortune, has retaken the distinction as<a href="https://www.benzinga.com/markets/equities/24/09/40945833/walmart-to-offer-pay-by-bank-feature-for-online-transactions-with-launch-in-2025"> the world&#8217;s richest woman</a>.
As of Sept. 4, Walton&#8217;s wealth was estimated at $89.1 billion, according to Forbes &#8220;World Wealthiest Woman&#8221; list. The ranking puts her slightly ahead of French cosmetics company L&#8217;Oreal heiress Francoise Bettencourt Meyers, USA Today <a href="https://www.usatoday.com/story/money/2024/09/16/alice-walton-richest-woman-forbes/75256526007/">reported</a>.
Bettencourt Meyers held the title last year when her worth was estimated at over $100 billion, but it is now at $88.4 billion.
The two heiresses have traded the No. 1 and No. 2 spots a few times over the years, such as when Bettencourt Meyers was the richest woman in 2019 but was then surpassed by Walton in 2020.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40420968/walmart-stock-one-of-the-most-compelling-retail-investments-7-analysts-highlight-ma">Walmart Stock &#8216;One Of The Most Compelling&#8217; Retail Investments: 7 Analysts Highlight Market Share Gains</a>
Bettencourt Meyers took the title as world&#8217;s richest woman back in 2023 from Walton, who then took third place due to Koch Inc. heiress Julia Koch, who now has a net worth of $74 billion as of Sept. 4, according to the Forbes ranking.
But Walton is not the richest person in her family.
She sits below her brothers Jim and Rob Walton, who were worth $95.9 billion and $94 billion respectively, as of Sept. 4.
Sam Walton&#8217;s heirs together own nearly 46% of Walmart.
Throughout her life, she has donated more than $5 billion to charitable foundations including the Crystal Bridges Museum of American Art, which she founded in November 2011 in Bentonville, Arkansas.
Elon Musk, who owns Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), SpaceX, X and other companies, is the <a href="https://www.benzinga.com/startups/24/09/40905106/elon-musk-gautam-adani-and-jensen-huang-lead-the-race-to-become-the-worlds-first-trillionaires">world&#8217;s richest person </a>with an estimated wealth of $251 billion.
Price Action: Walmart slipped 1.05% to $78.20 into Thursday&#8217;s late-day trading.
Exchange-traded funds that hold the stock saw losses ands gains.
<ul>
<li>Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) slipped 0.44%</li>
<li>Fidelity MSCI Consumer Staples Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSTA#NYSE">FSTA</a>) dropped 0.33%</li>
<li>VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) rose 0.75%</li>
</ul>
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</ul>
Image: Walmart, Wikimedia Commons

Personal Finance

FSTA

TSLA

Walmart Heiress Alice Walton Retakes Title As World's Richest Woman

Port employers and the union representing East and Gulf coasts dockworkers begin <a href="https://www.benzinga.com/news/global/24/08/40497103/strikes-at-us-ports-canadas-railways-may-cause-container-freight-rate-volatility">a two-day meeting</a> in New Jersey to prevent a strike that would disrupt maritime commerce along the entire U.S. Eastern Seaboard.
Talks on a labor deal for six of the 10 busiest ports stopped in June when the International Longshoremen&#8217;s Association called off wage negotiations with the U.S. Maritime Alliance (USMX) that represents ocean carriers and port operators, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-09-04/us-port-talks-kick-off-in-bid-to-avoid-economy-disrupting-strike?sref=TBDibEcD">reported</a>.
U.S. retailers are once again asking the White House to help about 45,000 dockworkers and 36 ports come to a resolution before a looming Sept. 30 deadline.
"At a time when inflation is on the downward trend, a strike or other disruption would significantly impact retailers, consumers and the economy,&#8221; National Retail Federation (NRF) CEO Matthew Shay said in a statement on Tuesday.
&#8220;The administration needs to offer any and all support to get the parties back to the table to negotiate a new contract."
The NRF said it led a coalition of 158 state and federal trade associations in June in sending a letter to President Joe Biden urging his administration to work with the union and the terminal operators toward ending the deadlock. It also sent a letter to both sides earlier this year asking them to resume labor talks.
Read Also: <a href="https://www.benzinga.com/government/24/08/40526448/canadian-government-intervenes-to-avoid-economic-crisis-orders-railways-back-to-work">Canadian Government Intervenes To Avoid Economic Crisis, Orders Railways Back To Work</a>
&#8220;The threat of a strike during the peak shipping season has many retailers already implementing costly mitigation,&#8221; Shay said.
"At a time when inflation is on the downward trend, a strike or other disruption would significantly impact retailers, consumers and the economy.&#8221;
The union is seeking a wage hike of nearly 80% over six years, compared to the 32% pay increase that West Coast dockworkers received last summer after ironing out a labor deal.
ILA President&nbsp;Harold Daggett&nbsp;has repeatedly warned of a strike if no deal is reached by the deadline and has opposed using automation at port terminals.
USMX has said they have given an &#8220;industry-leading&#8221; offer on wages and proposed keeping the language on automation out of the existing contract.
Price Action: Major retailers and the exchange-traded funds that hold retail stocks saw losses into Wednesday&#8217;s mid-morning trading.
<ul>
<li>Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) was down 0.77% to $361.87</li>
<li>Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) slipped 0.039% to $77.15</li>
<li>Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) fell 0.12% to $151.62</li>
<li>SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) declined 0.89% to $74.37</li>
<li>VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) was down 0.51% at $207.58.</li>
<li>Direxion Daily AMZN Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZU#NASDAQ">AMZU</a>) slid 1.42% to $29.25.</li>
</ul>
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</ul>
Photo: Shutterstock

Government

AMZU

Retailers Plea For Deal: US Ports, Union Start Two-Day Talk In Effort To Prevent Disruptive Strike

Several analysts raised their price targets for The TJX Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TJX#NYSE">TJX</a>) following yesterday&#8217;s strong second-quarter results.
TJX reported EPS of $0.96 (+13%) and $13.468 billion in sales, which exceeded estimates, driven by a <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40484279/tjx-companies-q2-earnings-strong-sales-higher-margins-invests-in-dubais-brands-for-less" rel="noreferrer noopener">4% rise in comparable store sales</a>.
The company raised its FY25 EPS outlook to $4.09-$4.13 and expects third-quarter EPS between $1.06 and $1.08, <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">despite slightly missing estimates</a>.
BofA Securities analyst Lorraine Hutchinson raised the price target to $135 from $115 while maintaining a Buy rating, reflecting an increased confidence in sales and profitability. The analyst writes that a strong quarter confirms its market share gains and consumer appeal.
Better buying and tailored merchandising strategies are enhancing markon and lowering markdown rates for TJX, adds the analyst.
Hutchinson anticipates these factors, combined with selective price increases, to boost merchandise margins. The analyst raised the FY25 EPS estimate by 1% to $4.12.
Apart from this, maintaining a Buy rating, UBS boosted the price target to $148 (from $134), Jefferies to $140 (from $130), TD Cowen to $125 (from $120), and Loop Capital to $140 (from $125).
Telsey Advisory Group analyst Dana Telsey increased the price target to $134 from $128 while reiterating the Outperform rating.
The analyst says that TJX&#8217;s consecutive earnings beats show that its value proposition resonates with consumers, supported by a favorable buying environment that meets increased traffic.
With a strong quarterly performance and raised FY24 guidance, TJX is set to continue gaining profitable market share through consistent comp gains and new store openings, including its 5,000th store, adds the analyst.
The analyst writes that the company is well-positioned this fiscal year to attract value-seeking consumers across all income brackets.
Telsey slightly raised the FY24 EPS estimate to $4.15 (from $4.13 earlier, compared to the previous consensus estimate of $4.13.
Moreover, reaffirming an Outperform rating, Evercore ISI Group increased the price target to $138 (from $126), BMO Capital to $133 (from $116), and Baird to $128 (from $113).
Investors can gain exposure to the stock via Segall Bryant &amp; Hamill Trust Segall Bryant &amp; Hamill Select Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USSE#NYSE">USSE</a>) and VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>).
Price Action: TJX shares are down 0.53% at $119.59 at the last check Thursday.
Photo via <a href="https://commons.wikimedia.org/wiki/File:TJ_Maxx_%2851922971696%29.jpg">Wikimedia Commons</a>
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</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Segall Bryant & Hamill Trust Segall Bryant & Hamill Select Equity ETF

USSE

TJX Companies Gains Analyst Confidence With Consecutive Earnings Beats And Market Share Growth

Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) and Ross Stores, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NYSE">ROST</a>) should <a href="https://www.benzinga.com/markets/equities/24/08/40393307/why-is-target-corporation-stock-gaining-today">post better revenues</a> for the second quarter as consumers continue spending despite macro uncertainties, according to analysts from Tesley Advisory Group.
Analyst Joseph Feldman expects Target&#8217;s second-quarter revenue to improve 2% from a year ago to $25.3 billion when it reports earnings on Wednesday before the market opens. His forecast exceeds FactSet revenue consensus of $25.2 billion.
&#8220;Broadly, we believe consumers are showing resiliency as they continue to search for value and focus on essentials, while selectively spending on discretionary items and responding to innovation and newness,&#8221; Feldman wrote in a note on Target, commenting on shoppers in general.
Target continues to focus on its value-offering by cutting prices while offering private brands in new stores, he said.
Feldman maintains an Outperform rating and a $190 price target on Target shares.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40393687/retail-sales-soar-in-july-weekly-jobless-claims-undercut-expectations-traders-lea">Retail Sales Soar In July, Weekly Jobless Claims Undercut Expectations: Traders Lean Towards 25-Basis-Point Cut In September</a>
Analyst Dana Tesley forecasts a 6.9% jump in year-over-year second quarter revenue for Ross Stores to $5.28 billion when it releases its results on Thursday after the market closes. Her expectation exceeds revenue consensus of $5.24 billion.
&#8220;We continue to be encouraged by ROST's string of strong results across the past five quarters, with the business navigating macro challenges relatively well despite outsized pressure on some of its core consumers,&#8221; she wrote in a note.
&#8220;We are encouraged by management's efforts to improve the product mix and drive efficiencies across the business.&#8221;
She maintains a Market Perform and $160 price target on the stock.
Price Action: Target gained 1.67% to close at $144.03 on Friday, while exchange-traded funds that track the stock also advanced.
<ul>
<li>VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) gained 0.61</li>
<li>Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) picked up 0.27%</li>
<li>Simplify Next Intangible Value Index ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NXTV#BATS">NXTV</a>) edged up 0.15%</li>
<li>Federated Hermes U.S. Strategic Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDV#NYSE">FDV</a>) went up 0.41%</li>
<li>Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) gained 0.32%</li>
</ul>
Ross Stores slipped 0.27% to close at $147.40 on Friday, while ETFs that follow its shares had mixed results.
<ul>
<li>VictoryShares THB Mid Cap ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDCP#NASDAQ">MDCP</a>) rose 0.52%</li>
<li>BlackRock Future U.S. Themes ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BTHM#NYSE">BTHM</a>) slipped 0.03%</li>
<li>IShares U.S. Consumer Focused ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>) moved up 0.24%</li>
<li>LG QRAFT AI-Powered U.S. Large Cap Core ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQAI#NYSE">LQAI</a>) remained unchanged</li>
<li>Invesco S&amp;P 500 Equal Weight Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPD#NYSE">RSPD</a>) rose 0.29%</li>
</ul>
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</ul>

Target, Ross Stores Expected To Post Higher Revenues As Consumers Stay Resilient: Analysts

Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) shares are <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">trading higher on Thursday</a>.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, TGT stock has gained over 8% in the past year.
Investors can gain exposure to the stock via&nbsp;VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) and&nbsp;SPDR Select Sector Fund &#8211; Consumer Staples (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Yesterday, Oppenheimer analyst Rupesh Parikh maintained Target with an Outperform rating, <a target="_blank" href="https://www.benzinga.com/quote/TGT/analyst-ratings" rel="noreferrer noopener">lowering the price forecast from&nbsp;$200&nbsp;to&nbsp;$180.</a>
Today, the stock is soaring following solid earnings results and an outlook boost from Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>).
Walmart&#8217;s second-quarter adjusted earnings per share of 67 cents exceeded the 64 cents estimate. The retail behemoth&#8217;s second-quarter revenue reached $169.3 billion, above the $168.569 billion estimate.
Check This Out: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40391777/walmart-q2-earnings-e-commerce-and-advertising-businesses-fuel-revenue-and-profit-beat-hikes-annual" rel="noreferrer noopener">Walmart Q2 Earnings: E-commerce and Advertising Businesses Fuel Revenue And Profit Beat, Hikes Annual Guidance</a>
Consolidated gross margin rate improved by 43 basis points, driven by Walmart U.S. and Walmart International.
Walmart announced that Bob Moritz, the retired Chairperson of PricewaterhouseCoopers (PwC), has been appointed to<a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40390428/bob-moritz-former-pricewaterhousecoopers-chairperson-named-to-walmart-board-of-directors" rel="noreferrer noopener"> its Board of Directors, effective immediately.</a>
For the third quarter, Walmart projects adjusted earnings per share between 51 cents and 52 cents, versus the 55 cents estimate.
Walmart currently sees FY25 adjusted EPS outlook of $2.35 to $2.43 <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">versus the $2.43 estimate.</a>
Walmart boosted FY25 net sales (at constant currency) growth guidance to 3.75%-4.75% from&nbsp;3.0%-&nbsp;4.0%.
Target is capitalizing on Walmart&#8217;s quarterly success by riding the positive momentum and boosting investor confidence, as evidenced by its rising stock price.
In June, Target declared a quarterly dividend of&nbsp;$1.12&nbsp;per common share, a 1.8% increase from the prior quarterly dividend of&nbsp;$1.10.&nbsp; The <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39287040/target-corporation-increases-quarterly-dividend-by-1-8-percent" rel="noreferrer noopener">dividend is payable&nbsp;Sept. 10, 2024&nbsp;</a>
Earlier this week, Target announced that&nbsp;Amy Tu&nbsp;has been named chief legal and compliance officer and corporate secretary effective&nbsp;Aug. 25. She started her career in retail with senior legal roles at<a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40332743/target-names-amy-tu-chief-legal-and-compliance-officer" rel="noreferrer noopener"> companies such as Walmart and The Gap.</a>
Price Action: At the last check Thursday, TGT shares were trading higher by 3.86% to $141.00 premarket, while WMT shares were trading higher by 7.59% to $73.87.
Photo via Shutterstock
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</ul>

Why Is Target Corporation Stock Gaining Today?

Editor&#8217;s note: This story has been updated to correct the spelling of the analyst firm Telsey Advisory Group.
Careful consumers have put the brakes on Home Depot Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) revenue for<a href="https://www.benzinga.com/news/earnings/24/08/40345499/s-p-500-gains-1-home-depot-earnings-top-views"> the second quarter</a> as they await the Federal Reserve&#8216;s expected rate cut in mid-September while navigating a shaky economy, an analyst says.
The retail giant posted $43.1 billion in revenue for the three-month period, down 0.6% from a year ago and missing the Wall Street consensus of $43.3 billion.
&#8220;The soft sales reflect pressure from the tough home improvement and soft housing market trends, with higher interest rates and macroeconomic uncertainty,&#8221; Telsey Advisory Group analyst Joseph Feldman said in a note.
&#8220;Furthermore, CFO Richard McPhail spoke in a CNBC interview this morning about how the consumer has become increasingly cautious in the current environment, while also deferring projects with expected interest-rate cuts creating lower financing costs three to six months from now,&#8221; the analyst added.
Read Also: <a href="https://www.benzinga.com/news/earnings/24/08/40330906/home-depot-earnings-are-imminent-here-are-the-recent-forecast-changes-from-wall-streets-most-accura">Home Depot Earnings Are Imminent; Here Are The Recent Forecast Changes From Wall Street&#8217;s Most Accurate Analysts</a>
Telsey maintained a Market Perform rating and a $360 price target on Home Depot.
Home Depot realized $1.3 billion in revenue over six weeks during the quarter as a result of acquiring building products provider SRS Distribution Inc. earlier this year. 
<a href="https://account.microsoft.com/privacy/ad-settings" target="_blank" rel="noreferrer noopener"></a>Customer transactions for the second quarter fell 1.8%. Same-store sales worldwide decreased 3.3%, while same-store sales in the U.S. dropped 3.6%.
Second-quarter gross profit rose 1.8% from the same period last year to $14.4 billion to post a gross margin of 33.4% that is up 40 basis points from a year ago.
Price Action: Home Depot rose 1.52% to $351.12 by Tuesday&#8217;s mid-afternoon trading, while exchange-traded funds that track the stock gave mixed reactions to Tuesday&#8217;s earnings report.
<ul>
<li>IShares U.S. Consumer Focused ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>) ticked up 0.23%</li>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) gained 2.28%</li>
<li>VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) slipped 0.18%</li>
<li>ProShares Ultra Consumer Discretionary (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCC#NYSE">UCC</a>) slid 1.06%</li>
<li>Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>) rose 2.14%</li>
</ul>
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</ul>
Photo: Shutterstock

FDIS

Select Sector SPDR-Consumer Discretionary

Home Depot Sales Fall Short As Consumers 'Become Increasingly Cautious': Analyst (CORRECTED)

The online e-commerce behemoth Amazon&nbsp;kicked off its most-anticipated two-day Prime Day event. Prime Day sales rose almost 12% year over year in the first seven hours, per data from Momentum Commerce.
According to Numerator, the average household spent about $100 on Prime Day purchases as of noon New York time on Jul 16. The top-selling items included protein shakes, the Amazon Fire TV stick streaming device, sunscreen and Amazon&#39;s Happy Belly brand grocery items.
Investors can tap the opportune moment with the ETFs having a double-digit allocation to this online behemoth. These include ProShares Online Retail ETF (ARCA:ONLN), Fidelity MSCI Consumer Discretionary Index ETF (ARCA:FDIS), Vanguard Consumer Discretionary ETF (ARCA:VCR), Consumer Discretionary Select Sector SPDR Fund (ARCA:XLY) and VanEck Vectors Retail ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rth#NASDAQ">RTH</a>).
According to Adobe data, the 48-hour event is expected to rake in $14 billion in online sales, up 10.5% from the last year. Shoppers are expected to spend $7.1 billion on Amazon on Tuesday alone, up 11.3% from last year. Day 2 is expected to bring $6.9 billion in online sales, up 9.2% year over year. The biggest discount is expected on electronics at 22%, followed by 20% on clothing, 17% on home goods and furniture and 11% on sporting goods.
<h3>ETFs in Focus</h3>
ProShares Online Retail ETF
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 18 stocks in its basket. Amazon is the top firm, accounting for 23.4% of the portfolio. ProShares Online Retail ETF has amassed $101.8 million in its asset base and charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 274 stocks in its basket. Of these, Amazon takes the top spot with a 23.3% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.5 billion in its asset base and charges 8 bps in annual fees from investors. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Discretionary ETF
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 304 stocks in its basket. Of these, Amazon occupies the top position, with a 23.4% allocation. Broadline Retail takes the largest share at 25.5%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots. VCR charges investors 10 bps in annual fees. The product has managed $5.7 billion in its asset base and carries a Zacks ETF Rank #3 with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and the most popular product in this space, with AUM of nearly $20 billion and an average daily volume of 2.7 million shares. Holding 52 securities in its basket, Amazon takes the top spot with 22.5% of assets. Broadline retail, specialty retail, hotels, restaurants &amp; leisure, and automobiles are the top four sectors with double-digit exposure each. Consumer Discretionary Select Sector SPDR Fund charges 0.09% in expense ratio and has a Zacks ETF Rank #3 with a Medium risk outlook.
VanEck Vectors Retail ETF
VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with a 20.4% share. VanEck Vectors Retail ETF has amassed $213 million in its asset base and charges 35 bps in annual fees. It trades in trading volume of 5,000 shares per day on average and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2303589/5-etfs-to-profit-from-amazon-s-prime-day-event?cid=CS-BENZ-FT-etf_news_and_commentary-2303589">To read this article on Zacks.com click here.</a>

Events

Tech

ONLN

5 ETFs to Profit From Amazon's Prime Day Event

Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) should beat last year&#8217;s<a href="https://www.benzinga.com/news/24/07/39770529/amazon-gears-up-for-prime-day-2024-with-2t-market-cap"> Prime Day results</a> due to &#8220;early access deals,&#8221; analysts say.
Bank of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) expects sales for this year&#8217;s 48-hour sales spree to jump 7% to $13 billion, beating the 6.1% sales leap to $12.7 billion posted during last year&#8217;s Prime Day, CNBC report <a href="https://www.cnbc.com/2023/07/13/amazon-prime-day-more-than-375-million-items-sold.html">citing</a> Adobe Analytics.
&#8220;In our view, this year&#8217;s press release was more focused on early access deals and discounted services than last year, which could pull forward some sales out of Prime Day(s),&#8221; the bank said in a note on Monday
Amazon will offer discounts on hundreds of items over the two days to consumers with Amazon Prime memberships, including 57% off an Amazon Fire HD tablet computer, 28% off a Kenmore electric oven and 37% off a 55-inch Amazon Fire TV, according to its website.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39695135/analysts-see-upside-ahead-for-amazon-stock-as-prime-day-approaches">Analysts See Upside Ahead For Amazon Stock As Prime Day Approaches</a>
Bank of America noted that Amazon isn&#8217;t the only retailer holding July sales events. Retail giant Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) just held a deal event that ended July 11. Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) held a &#8220;Circle Week&#8221; promotion that closed on July 13. TikTok Shop is holding a &#8220;Deal for You Days&#8221; that began on July 9.
Bank of America maintains a Buy rating and price target of $194.49 for Amazon.
Price Action: Amazon edged up 0.28% to $195.04 by late-morning trading on Monday. Walmart edged up 0.84% to $69.82. 
Exchange-traded funds that hold both Amazon and Walmart shares, however, trended downward.
Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) slipped 0.01%, while Fidelity MSCI Consumer Staples Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSTA#NYSE">FSTA</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) both dipped 0.08%. ProShares Ultra Consumer Staples (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SZK#NYSE">SZK</a>) declined 0.70% and Van Eck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) slipped 0.19%.
Read Now:
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<li><a href="https://www.benzinga.com/news/24/06/39479866/whats-going-on-with-amazon-stock-as-prime-day-approaches">What&#8217;s Going On With Amazon Stock As Prime Day Approaches?</a></li>
</ul>
Image: Shutterstock

AMZN

Amazon Set To Top Last Year's Prime Day Results Due To Early Deals, Analysts Say

Stocks gave varied reactions on Friday morning to the June <a href="https://www.benzinga.com/economics/macro-economic-events/24/07/39748331/june-producer-inflation-exceeds-forecasts-restrains-investor-euphoria-following-c">Producer Price Index </a>from the U.S. Bureau of Labor Statistics rising 0.2% on a monthly basis.
<h3 class="wp-block-heading">June PPI Report: Key Highlights</h3>
<ul>
<li>In June, the headline PPI for final demand rose by 0.2% month-over-month, rebounding sharply from the upwardly revised flat reading in May and surpassing economists' expectations – as tracked by TradingEconomics – of a 0.1% increase.</li>
<li>The June rise in the index for final demand is attributed to a 0.6% monthly increase in prices for final demand services, while the index for final demand goods decreased by 0.5%.</li>
<li>The 2.6% annual surge in the headline number represented a 0.2 percentage point increase from the upwardly revised May print, and topped estimates of 2.3%.</li>
<li>The core PPI – which tracks prices for final demand less foods, energy, and trade services – advanced at a 0.4% monthly pace, advancing from May's upwardly revised 0.3% growth and surpassing estimates of 0.2%.</li>
<li>On an annual basis, the core PPI climbed by 3.1%, up from the previous 2.3% and marking the highest rate of increase since April 2023.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/markets/23/07/33219704/more-inflation-cheer-as-june-ppi-lighter-than-expected-lifting-markets-ahead-of-fridays-bank-earning">More Inflation Cheer As June PPI Lighter Than Expected, Lifting Markets Ahead Of Friday&#8217;s Bank Earnings</a>
Before the <a href="https://www.bls.gov/news.release/ppi.nr0.htm">PPI </a>release, markets assigned a 6.7% probability of a rate cut to 5.00%-5.25% in July, a 91.7% chance of maintaining that range in September, and a 54.6% probability of a further cut to 4.75%-5.00% in November, according to the CME FedWatch Tool.
Treasury yields gave mixed reactions to the PPI data. The rate-sensitive two-year yield slipped to 4.485% before the market open, while the long-dated 10-year yield ticked up to 4.205%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) slid 0.37%. The dollar fell slightly.
Gold, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), slipped 0.25%.
The S&amp;P 500 index was up 0.65%, while the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500, ticked up 0.19% on Friday morning.
The tech-heavy Nasdaq Composite was up 0.71% on Friday morning to 18,412, while the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) picked up 0.15%.
Price Action: Retailers gave mixed reactions to the PPI data. Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) was 0.42% lower at $69.48, while Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) slipped 0.32% to $194.42.
SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) ticked 1.35% higher, while VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) gained 0.45% and Direxion Daily AMZN Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZU#NASDAQ">AMZU</a>) declined 0.95% on Friday morning.
Read Now:
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<li><a href="https://www.benzinga.com/top-stories/24/06/39391685/fed-members-cool-on-raising-interest-rates-these-conditions-could-take-months-and-more-likely-quarte">Fed Members Cool On Raising Interest Rates: &#8216;These Conditions Could Take Months, And More Likely Quarters To Play Out&#8217;</a></li>
</ul>
Photo: Shutterstock

Econ #s

Federal Reserve

iShares Trust Barclays 20+ Year Treasury Bond Fund

Stocks Show Mixed Reactions To June Producer Inflation Data

Target Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) is reportedly intensifying its efforts to combat shoplifting by lowering the threshold for staff to intervene in thefts.
Employees can now act on theft incidents valued at $50 or more, a reduction from the previous $100 limit. This new guideline will be implemented this summer, according to a report from <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-06-27/target-tgt-changes-shoplifting-policy-for-workers-to-stop-thefts?srnd=industries-v2&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.
The adjustment is one of several measures Target is taking to address theft, which has significantly impacted its <a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38961424/why-is-retail-giant-target-stock-plunging-today" rel="noreferrer noopener">profit margins in recent quarters.</a>
The report added that the company, which operates nearly 2,000 stores across the U.S., expects to stabilize these losses this year.
The report cited a Target spokesperson, who stated that the company is making substantial progress in tackling theft through various in-store actions and collaboration with policymakers and communities.
&#8220;Our priority remains ensuring the safety of the team and guests, while maintaining the positive experience Target shoppers expect,&#8221; the spokesperson said.
Also Read: <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/24/06/39454894/target-and-shopify-team-up-new-merchants-and-products-coming-to-target-plus" rel="noreferrer noopener">Target And Shopify Team Up: New Merchants And Products Coming To Target Plus</a>
Retailers have different policies for handling shoplifters, with thresholds ranging from $25 to $100.
Brand Elverston, an industry consultant and former director of asset protection at Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), noted that staff typically avoid physical confrontation and that response depends on law enforcement capacity, per the report.
Some states have high limits for prosecuting shoplifting, with California decriminalizing theft under $950, which critics argue encourages organized retail crime.
In response to rising theft, U.S. retailers have increased security measures, including hiring guards, installing more cameras, and altering self-checkout systems.
Items prone to theft, such as those easily sold online, have impacted sales and profits. Last year, Target closed nine stores in four states to mitigate losses and has since been <a target="_blank" href="https://www.benzinga.com/markets/equities/23/12/36329428/targets-decision-to-close-9-stores-due-to-theft-violence-under-microscope-report-reveals-crime-h" rel="noreferrer noopener">locking up frequently stolen products and upgrading self-checkout technology.</a>
Target stock has gained more than 10% in the past 12 months. Investors can gain exposure to the stock via&nbsp;Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Price Action: TGT shares closed lower by 0.31% at $146.72 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/06/39316320/how-targets-innovative-strategy-resolves-a-multi-billion-dollar-inventory-crisis-report" target="_blank" rel="noreferrer noopener">How Target&#8217;s Innovative Strategy Resolves A Multi-Billion Dollar Inventory Crisis: Report</a>
Photo via Shutterstock

Media

Target Tightens Shoplifting Rules, Reduces Threshold To $50: Report

Consumers are <a href="https://www.benzinga.com/markets/equities/24/06/39338718/stocks-ease-tech-rises-bonds-eye-strongest-week-of-the-year-as-consumer-sentiment-sinks-in-june-">slightly more concerned </a>over the economy this month as they assess current business and labor market conditions, according to data released Tuesday.
The Conference Board said its Consumer Confidence Index dipped from 101.3 in May to 100.4 in June, while its Present Situation Index — based on consumers' gauge of current business and labor market conditions — improved from 140.8 last month to 141.5 in June.
But the nonprofit entity&#8217;s Expectations Index, which tracks consumers' short-term outlook for income, business and labor market conditions, fell from 74.9 in May to 73.0 in June. It has stayed below 80, the threshold which usually signals a recession ahead, for five straight months, the board said.
"Confidence pulled back in June but remained within the same narrow range that's held throughout the past two years, as strength in current labor market views continued to outweigh concerns about the future,&#8221; Dana M. Peterson, the board&#8217;s chief economist, said in a statement.
&#8220;However, if material weaknesses in the labor market appear, confidence could weaken as the year progresses.&#8221;
She said consumers &#8220;expressed mixed feelings this month&#8221; as their view of the present situation improved slightly as sentiment on the current labor market rose, but their assessment of current business conditions cooled. 
Also Read: <a href="https://www.benzinga.com/news/large-cap/24/06/39387497/walmart-enhances-walmart-to-compete-with-amazon-prime-key-differences-unveiled">Walmart Enhances Walmart+ To Compete With Amazon Prime: Key Differences Unveiled</a>
&#8220;Meanwhile, for the second month in a row, consumers were a bit less pessimistic about future labor market conditions,&#8221; she added.
&#8220;However, their expectations for both future income and business conditions weakened, weighing down the overall Expectations Index.&#8221;
The decline in confidence between May and June centered on consumers aged 35 to 54, according to Peterson.
&#8220;By contrast, those under 35 and those 55 and older saw confidence improve this month,&#8221; she said.
&#8220;No clear pattern emerged in terms of income groups. On a six-month moving average basis, confidence continued to be highest among the youngest (under 35) and wealthiest (making over $100K) consumers."
Consumer spending has been &#8220;the driving force&#8221; behind this economic expansion, but there are concerns about the consumer's willingness and ability to continue parting with money, Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said about the June Consumer Confidence Index.
&#8220;The drop in consumer confidence isn't welcome news from that perspective,&#8221; he said on Tuesday.
&#8220;Ultimately, we believe the bull market we are in isn't going to be derailed until either we go into recession or the Fed changes interest rate policy from potential cuts to actual hikes, so just expect volatility between now and the end of the year, but don't expect the bull market to end without a change in the economy or Fed posture.&#8221;
Price action: Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) dropped 2.53% by mid-day on Tuesday, while Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) gained 1.13%. Home Depot Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) declined 4.01%.
SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) slipped 0.96% by mid-day Tuesday as VanEck Retail ETF NASDAQ: RTH) fell 0.90% and Amplify Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBUY#NYSE">IBUY</a>) gained 0.61%.
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39420214/costco-stock-at-52-week-high-still-time-to-buy">Costco Stock At 52-Week High: Still Time To Buy?</a>
Photo: Shutterstock

Economics

IBUY

Consumer Confidence Declines As Worries Over Economy Persist

Shares of retail giant Target Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) and Shopify Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>) are trading <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">higher premarket today</a>.
Target has announced a partnership with global commerce platform Shopify to feature a selection of popular merchants and their products on Target Plus, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39451398/target-and-shopify-partner-to-help-consumers-discover-and-shop-an-expanded-assortment-on-target-co" rel="noreferrer noopener">its curated digital marketplace</a>.
This collaboration aims to expand Target Plus with new, trendy products and brands such as True Classic and Caden Lane, providing consumers with a broader array of affordable and high-quality options.
Target will also become the first major retailer to integrate select Shopify merchants&#8217; products into its physical stores in the coming months.
The initiative will allow shoppers to discover new brands in-store, enhancing their shopping experience with innovative products.
Shopify merchants in the U.S. can apply to sell on Target Plus through Marketplace Connect, an app facilitating seamless sales and order management on leading marketplaces.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39316320/how-targets-innovative-strategy-resolves-a-multi-billion-dollar-inventory-crisis-report" rel="noreferrer noopener">How Target&#8217;s Innovative Strategy Resolves A Multi-Billion Dollar Inventory Crisis: Report</a>
Target Plus, launched in 2019, offers a curated collection of products reflecting Target&#8217;s quality and value. The platform features over 2 million products from numerous brands.
The partnership with Shopify aims to further expand this assortment, providing consumers with even more premium and direct-to-consumer brands.
Cara Sylvester, Target&#8217;s executive vice president and chief guest experience officer said, &#8220;Target Plus invites consumers to explore a curated collection of products from vendors we trust, so they can shop our assortment with confidence.&#8221;
Shopping on Target Plus allows consumers to enjoy their favorite Target perks, including 5% off with a Target Circle Card, free shipping on orders over $35, and free returns.
Target stock has gained more than 8% in the past 12 months. Investors can gain exposure to the stock via VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) and Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Price Action: TGT shares are trading higher by 0.60% at $147.00 and SHOP is up 1.63% at $66.10 in premarket at last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39188408/walmart-sweetens-the-deal-for-hourly-employees-with-annual-bonuses-and-skill-upgrades-details" target="_blank" rel="noreferrer noopener">Walmart Sweetens The Deal For Hourly Employees with Annual Bonuses And Skill Upgrades: Details</a>
Photo via Shutterstock

SHOP

Target And Shopify Team Up: New Merchants And Products Coming To Target Plus

U.S. retail sales for May fell short of expectations, concerning economists, as it could signal a slowdown <a href="https://www.benzinga.com/news/econ-s/24/06/39378193/may-retail-sales-fall-short-suggest-weakening-consumer">in economic growth.</a>
The U.S. Census Bureau reported that sales ticked up 0.1% from April to May, missing expectations of a 0.2% month-on-month increase.
May sales, which totaled $703.1 billion, were up 2.3% from a year ago, while sales for the March 2024 to May 2024 period gained 2.9% from the same period a year earlier, the agency reported.
Nonstore retailers were up 6.8% from last year, while food services and drinking places were up 3.8 % from May 2023.
The market reacted calmly to the retail sales miss, as exchange-traded funds in the retail and food services sectors saw little movement by mid-morning on Tuesday. 
Price action: S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) remained unchanged, while VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) edged up 0.06% and Amplify Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBUY#NYSE">IBUY</a>) gained 0.17%. Meanwhile, Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) went up 0.30%, First Trust Nasdaq Food &amp; Beverage ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXG#NASDAQ">FTXG</a>) slipped 0.38% and Veg Tech Plant-based Innovation &amp; Climate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EATV#NYSE">EATV</a>) gained 0.44%.
Major retailers had mixed reactions to the latest retail sales numbers. Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) went up 0.35% by mid-morning on Tuesday, while Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) slipped 0.90% and The Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) picked up 1.31%.
Economists and financial experts weighed in on the latest retail sales data to explain the implications for the market.
Also read: <a href="https://www.benzinga.com/news/24/06/39381240/us-stocks-mixed-retail-sales-increase-0-1-in-may">US Stocks Mixed; Retail Sales Increase 0.1% In May</a>
Resilient consumer to the rescue
Chris Zaccarelli, chief investment officer, Independent Advisor Alliance,&nbsp;said retail sales came in really light on Monday morning and &#8220;while that may be good news for inflation hawks, it could be the beginning of a slowdown in growth,&#8221; which would hurt a lot more than a couple of interest rate cuts would help.
He said the resilient consumer has been &#8220;the big story of this bull market&#8221; and without them, the economy would have slowed or fallen into recession a long time ago.
Zaccarelli noted that stock prices are going up without the help of rate cuts because corporate profits and the economy continue to expand. 
&#8220;Without the consumer, this bull market is going to stall out, so investors need to see more consumer spending and not a material slowdown, which this report could be indicating,&#8221; he wrote.
Industrial Sector &#8216;In Low Gear&#8217;
Bill Adams, chief economist, Comerica Bank, remarked that industrial production was stronger than expected in May, but revisions were negative while capacity utilization was up on the month but still well below its 2022 peak.
He noted that the motor vehicle assembly rate &#8220;edged up a little&#8221; on the month and was 5% above its 2023 average.
&#8220;The industrial sector is operating in low gear, adding to forces pushing inflation lower,&#8221; he said.
&#8220;The big picture is that the industrial sector has been running cooler over the last year and a half.&#8221;
 He said that American consumers have shifted spending priorities toward experiences and away from things, weighing on demand for goods, and high interest rates are restraining business capital spending and demand for construction materials.
He noted that May retail sales figures suggested that real GDP continues to grow more slowly in the second quarter of this year than in the second half of 2023.
&#8216;Consumers Retrench&#8217;
Jeffrey Roach, chief economist at LPL Financial, noted that restaurant spending fell in May &#8220;as consumers retrench&#8221; but that motor vehicle sales rose as dealers increased incentives to entice consumers. He also said, however, that several retail categories such as furniture sales fell for the fourth time in six months as consumers pulled back purchases.
&#8220;Consumer spending is cooling in a fairly orderly fashion,&#8221; he wrote. &#8220;So far, the economy could pull off a soft landing, especially if the Fed is quick to adjust policy as conditions change.&#8221;
&#8216;Analysts Concerned&#8217;
Quincy Krosby, chief global strategist at LPL Financial, noted that the latest retail sales report pushed Treasury yields lower by coming in weaker than expected, but the downward revision for two previous months has &#8220;analysts concerned&#8221; that lower and middle income wage earners are under pressure from higher prices.
&#8220;Should employment data, particularly initial unemployment claims, continue to indicate a more defined softening in the labor market, the Fed may &#8212; as suggested by Fed Chair [Jerome] Powell&#8211;need to recalibrate its timetable in terms of when to commence policy easing,&#8221; she wrote.
Read now: <a href="https://www.benzinga.com/top-stories/24/06/39383798/the-ai-big-10-10-ai-stocks-now-comprise-28-of-s-p-500-up-from-14-in-2023">The &#8216;AI Big 10&#8217;: 10 AI Stocks Now Comprise 28% Of The S&amp;P, Up From 14% In 2023</a>
Image created using artificial intelligence via Midjourney.

Advisors Series Trust VegTech Plant-based Innovation & Climate ETF

EATV

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Economist React To May Retail Sales Data: 'Consumer Spending Is Cooling In A Fairly Orderly Fashion'

As innovation continues to transform industries, investing in specialty ETFs like iShares U.S. Energy (IYE), ARK Fintech Innovation (ARKF), and VanEck Retail (RTH) could be a smart way to diversify your portfolio while capitalizing on high-growth sectors. Read more… Specialty ETFs, or sector funds, offer a unique way for investors to zero in on specific industries or market segments that align with their growth expectations. Unlike traditional index funds that provide broad market exposure, specialty ETFs focus on niche sectors such as energy, fintech, or consumer goods, making it easier for investors to tap into the areas of the economy that are experiencing rapid growth, innovation, or transformation.   
Below, I have highlighted three specialty ETFs that are fundamentally sound and positioned to offer strong growth opportunities: iShares U.S. Energy ETF (<a href="https://stocknews.com/stock/IYE/">IYE</a>), ARK Fintech Innovation ETF (<a href="https://stocknews.com/stock/ARKF/">ARKF</a>), and VanEck Retail ETF (<a href="https://stocknews.com/stock/RTH/">RTH</a>). These funds provide diversified exposure within their respective sectors, allowing investors to focus on industries with strong growth potential.
Investor sentiment toward specialty ETFs is generally upbeat, thanks to their ability to target high-growth sectors and niche markets with specific investment themes. However, there is some caution due to the lack of diversification, as these funds are more susceptible to sector-specific risks and volatility.
Despite these risks, many investors are turning to specialty ETFs as a strategic way to position their portfolios to benefit from the growth potential of industries that are on the cusp of transformation. Whether it's the energy transition, the rise of fintech, or the evolving retail sector, these funds present attractive options for investors looking to capitalize on emerging trends.
To that end, let's delve into the fundamental aspects of the above-mentioned ETFs in detail:
iShares U.S. Energy ETF (<a href="https://stocknews.com/stock/IYE/">IYE</a>)
IYE seeks to track the investment results of a market-cap-weighted index composed of large-cap U.S. companies in the energy industry. The fund holds a concentrated portfolio of companies that facilitate the production and distribution of oil and gas. It tracks the performance of the Russell 1000 Energy RIC 22.5/45 Capped Index.
With $1.34 billion in assets under management (AUM), its <a href="https://etfdb.com/etf/IYE/#holdings">top holdings</a> include Exxon Mobil Corporation (<a href="https://stocknews.com/stock/XOM/">XOM</a>) with a 21.65% weighting, Chevron Corporation (<a href="https://stocknews.com/stock/CVX/">CVX</a>) at 14.92%, followed by ConocoPhillips (<a href="https://stocknews.com/stock/COP/">COP</a>), and EOG Resources, Inc. (<a href="https://stocknews.com/stock/EOG/">EOG</a>) with 7.25% and 4.67% weightings, respectively. The fund currently has 43 holdings in total, with its top 10 assets comprising 68.3% of its AUM.
Over the past three months, IYE's fund inflows came in at $31 million. In addition, its 0.39% expense ratio compares to the category average of 0.47%. The ETF's <a href="https://www.ishares.com/us/products/239507/ishares-us-energy-etf">NAV was $49.21</a> as of January 15, 2025.
IYE pays an annual <a href="https://www.investopedia.com/terms/d/dividend.asp">dividend</a> of $1.25, translating to a 2.54% yield at the current price level, while its four-year average dividend yield is 3.02%. Over the past three years, its dividend payouts have grown at a CAGR of 11.74%.
IYE has gained 14.2% over the past year and 8.8% year-to-date to close the last trading session at $49.59.
IYE's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. It has an overall rating of A, equating to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
IYE also has an A grade for Buy &amp; Hold and Trade and a B for Peer. Among the 46 ETFs in the B-rated <a href="https://stocknews.com/category/energy-equities-etfs/">Energy Equities ETFs</a> group, it is ranked #5. <a href="https://stocknews.com/stock/IYE/">Click here</a> to see all the IYE ratings.
ARK Fintech Innovation ETF (<a href="https://stocknews.com/stock/ARKF/">ARKF</a>)
ARKF is an exchange-traded fund managed by ARK Investment Management LLC. This actively managed fund focuses on financial technology innovation, which ARK defines as the introduction of new, technology-driven products or services that have the potential to transform the financial sector. The fund invests in stocks of both domestic and international companies within this theme, and its performance is benchmarked against the S&amp;P 500 Index and the MSCI World Index.
The fund has approximately $1.02 billion AUM. ARKF's <a href="https://etfdb.com/etf/ARKF/#holdings">major holdings</a> include Coinbase Global, Inc. (<a href="https://stocknews.com/stock/COIN/">COIN</a>) with a 9.49% weighting, Shopify Inc. (<a href="https://stocknews.com/stock/SHOP/">SHOP</a>) at 9.29%, Robinhood Markets, Inc. (<a href="https://stocknews.com/stock/HOOD/">HOOD</a>), and MUTUAL FUND (OTHER) at 5.99% and 5.89%, respectively.
The ETF has 37 holdings, with its top 10 assets comprising 56.73% of its AUM. ARKF's expense ratio is 0.75%, higher than the category average of 0.56%.
Over the past year, ARKF has gained 52.1% to close the last trading session at $38.89. The fund's <a href="https://www.ark-funds.com/funds/arkf">NAV was $38.73</a> as of January 03, 2025.
ARKF's bright prospects are reflected in its POWR Ratings. The ETF's overall B rating equates to a Buy in our proprietary rating system.
ARKF has an A grade for Trade and a B for Buy &amp; Hold. The fund is ranked #57 out of 119 ETFs in the A-rated <a href="https://stocknews.com/category/technology-equities-etfs/">Technology Equities ETFs</a> group. Beyond what we stated above, we have also given ARKF a grade for Peer. Get all ARKF ratings <a href="https://stocknews.com/stock/ARKF/">here</a>.
VanEck Retail ETF (<a href="https://stocknews.com/stock/RTH/">RTH</a>)
Launched and managed by Van Eck Associates Corporation, RTH invests in U.S. equities within the consumer discretionary and retail sectors. It targets large-cap growth and value stocks while tracking the MVIS US Listed Retail 25 Index. The fund allocates at least 80% of its assets to companies that derive at least 50% of their revenue from retail, including specialty and multi-line retailers, wholesalers, and online platforms.
With $221.70 million in assets under management, its <a href="https://etfdb.com/etf/RTH/#holdings">top holdings</a> include Amazon.com, Inc. (<a href="https://stocknews.com/stock/AMZN/">AMZN</a>) with a 19.78% weighting, Walmart Inc. (<a href="https://stocknews.com/stock/WMT/">WMT</a>) at 8.71%, followed by Costco Wholesale Corporation (<a href="https://stocknews.com/stock/COST/">COST</a>) and The Home Depot, Inc. (<a href="https://stocknews.com/stock/HD/">HD</a>) with 8.06% and 7.73% weightings, respectively.
The fund currently has 26 holdings in total, with its top 10 assets comprising 71.2% of its AUM. RTH has a 0.35% expense ratio, lower than the 0.57% category average. Its fund inflows were $11.25 million over the past year.
The ETF distributes $1.73 in dividends annually, translating to a yield of 0.76%. Its four-year average dividend yield is 0.89%. Over the past three years, its dividend payouts have grown at a CAGR of 4.6%.
RTH has gained 20.1% over the past year and 13.8% over the past nine months to close the last trading session at $227.42. As of January 15, 2025, RTH had an <a href="https://www.vaneck.com/us/en/investments/retail-etf-rth/overview/">NAV of $227.70</a>.
RTH's strong fundamentals are reflected in its POWR Ratings. The ETF has an overall A grade, equating to a Strong Buy rating in our proprietary rating system.
RTH also has an A rating for Buy &amp; Hold, Peer, and Trade. Of the 48 ETFs in the B-rated <a href="https://stocknews.com/category/consumer-focused-etfs/">Consumer-Focused ETFs</a> group, it is ranked 8. Get all RTH ratings <a href="https://stocknews.com/stock/RTH/">here</a>.
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IYE shares were unchanged in premarket trading Friday. Year-to-date, IYE has gained 8.82%, versus a 0.95% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Shweta Kumari</h2> <img src='https:/wp-content/uploads/2022/03/Shweta-Kumari_Image-2.jpg' style="float:left; padding:5px;width:125px;">Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.<a href="https://stocknews.com/authors/?author=shweta-kumari">More...</a>The post <a href=https://stocknews.com/news/iye-arkf-rth-3-specialty-etfs-offering-targeted-growth-opportunities/>3 Specialty ETFs Offering Targeted Growth Opportunities</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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