The Commerce Department calculated that retail sales was up 0.1% last month, compared to economists’ forecasts for an increase of 0.3%, after being unchanged in September. [America’s Less Dressed: 3 Factors Weighing On Retail ETFs]
While many expected cheap gasoline prices to translate into increased spending, the weak sales report suggests that the savings are being used to pay for other necessities, such as higher rents.
“Retail was not so lucky. With very little cushion below it, the retail ETF fell below support at its September low to levels not seen since the Aug. 24 mini-flash crash. It is solidly below its 50- and 200-day moving averages and arguably below the rising trendline drawn from its 2008 bottom,” according to Barron’s.
SPDR S&P Retail ETF