Retail exchange traded funds were among the top-performing sector ETFs on Tuesday with a nearly 1% gain with assistance from AutoZone (NYSE: AZO) and DSW (NYSE: DSW).
AutoZone shares rallied 6% after the company reported higher quarterly profit. The solid results “should allay fears that higher gas prices and difficult comparisons will derail this business,” Deutsche Bank analysts said in a report. “Overall we’d characterize the quarter as mixed and would expect a muted reaction, although the good comp is certainly positive for the industry.”
Separately, shoe retailer DSW jumped about 17% after the company’s first-quarter earnings topped expectations. “With an expansive assortment of high-end footwear brands at competitive prices, DSW has carved out an intriguing niche between the department store and discount retail channels,” Morningstar analyst Jeremy Cohen wrote in a recent profile of the company. “DSW remains one of the top growth stories in footwear retailing.”
AutoZone and DSW are minor components in SPDR S&P Retail ETF (NYSEArca: XRT). The ETF was up nearly 1% on Tuesday.
SPDR S&P Retail ETF
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