Below the surface of today's positive price action, the ICSC
Chain Store Sales index hit a new high for the year. The July 4
weekend saw healthy consumer demand, and is propelling retail
shares to new highs basis the SPDR S&P Retail ETF (
The strength in the retail sector has come despite a material
slowdown in refinance activity in recent weeks. The bid in
the retail sector is complemented by the banking sector where the
SPDR S&P Bank ETF (
) is at new highs, and overcoming a few downgrades and talk of
higher leverage ratios for large institutions.
A positive factor for the overall market rests in the strength
of the bank and consumer sectors. Nothing is
absolute, but a market seeing strength in banks and retailers
should support the confidence of buyers.
Given the strength of retail names and signs the consumer is
healthy, it may be worth checking out a few Zacks #1 Rank (Strong
Buy) retailers like Wet Seal (
) Dillard's (
), or Bon Ton Stores (
What do you think: Will the banks and the retailers lead
the S&P 500 to new highs?
BON-TON STORES (BONT): Get Free Report
DILLARDS INC-A (DDS): Free Stock Analysis
SPDR-KBW BANK (KBE): ETF Research Reports
WET SEAL INC -A (WTSL): Free Stock Analysis
SPDR-SP RET ETF (XRT): ETF Research Reports
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