Wal-Mart (WMT) reported a jump in sales both here and abroad, but the positive numbers are so far showing minimal effect on retail exchange traded funds (ETFs).
It’s good news for the retail sector, though, because consumer spending is a key component of economic growth. Any movement in a positive direction is welcome because consumers have largely been curtailing spending in the wake of rising gas and food prices.
Consumer-focused ETFs that could be affected if retail numbers strengthen:
- Retail HOLDRs (RTH), holds 18.3% of Wal-Mart
- SPDR S&P Retail (XRT), holds 1.9%
- Consumer Staples Select Sector SPDR (XLP), holds 9.7%
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.