Tag Archive | RTH

4 ETFs To Play Surge In E-Commerce

Over the recent holiday period, the e-commerce sector witnessed exceptional growth as many consumers opted to shop on-line, as opposed via the traditional brick and mortar storefronts, paving the path to opportunity in the near future for the sector. 

According to a recent article in Barron’s, U.S. e-commerce spending accelerated 13% during the holiday season, pushing total e-commerce growth in 2010 to 10% year-over-year.  Furthermore, the article also contends that US e-commerce is expected to witness another 10% year-over-year growth in 2011, pushing spending to over $150 billion for the year.  Read More…

Three ETFs Influenced By Accelerated Economic Growth

Although it is hard to say that the US economy is in a sustainable recovery, there are plenty of signs showing that economic growth is accelerating, paving the path to opportunity for the Retail HOLDRs (RTH), the PowerShares Dynamic Retail (PMR) and the First Trust Dow Jones Internet Index (FDN).

The most promising and upbeat news recently came from a decline in new applications for jobless claims in the week ending November 20, 2010.  The 407,000 applications were far lower than expected and is aiding in easing concerns about job security and income growth.  This can further be supported by an increase in personal spending, which jumped to 0.4% in October, marking the fourth consecutive month of increased consumer spending.  Read More…

Three ETFs Influenced By Black Friday

With Thanksgiving right around the corner, the nation’s single busiest shopping day is about to unleash, and whether or not the retail sector will get a boost this holiday season is ambiguous, however, the Retail HOLDRs (RTH), the iShares Dow Jones US Consumer Services (IYC) and the SPDR S&P Select Retail (XRT) are likely to be influenced regardless of the outcome.

A poll conducted by the National Retail Federation shows that up to 138 million shoppers may visit the nation’s shopping malls over the Black Friday weekend, an increase of nearly 3 percent from last year.  Many are expected to flock to the blockbuster bargains that are being offered by retailer like Wal-Mart (WMT), Target (TGT) and Best Buy (BB).  Wal-Mart is expected to offer DVDs for as little as $1.96, Blue-Ray Disc Movies for $10 and some kitchen appliances for under $3, while Target is following a similar path and is also expected to offer a 40 inch LCD HDTV for under $300 and Best Buy is advertising netbook computers starting at under $150.    Read More…

Three ETFs To Play Amazon And Remain Diversified

As technology companies continue to generate cash and hoard it, some, like Amazon (AMZN) are looking at acquiring others to broaden their current offerings paving the road to prosperity for the Internet HOLDRs (HHH) the Retail HOLDRs (RTH) and the PowerShares NASDAQ Internet (PNQI).

According to insiders, Amazon, which was sitting on cash and short-term securities of $5.9 billion at the end of September, is currently nearing an agreement to buy Quidsi Inc., owner of Diapers.com and Soap.com.    Furthermore, the Seattle based online retailer recently bought Woot.com, a site that offers a daily discounted item and has agreed to purchase BuyVIP, a fashion site, which will expand its presence in Europe.  Read More…

Four ETFs Driven By Consumer Spending

The US economy grew at a faster than expected rate in the third quarter of this year, buoyed much by an increase in consumer spending, however, is still not growing at a rate to generate new jobs.  Despite this, a ray of light may shine on sectors driven by consumer spending enabling the Consumer Discretionary Select Sector SPDR (XLY), the Vanguard Consumer Discretionary (VCR), the PowerShares Dynamic Consumer Discretionary (PEZ) and the Retail HOLDRs (RTH) to reap the benefits.

According to the Commerce Department, consumer spending, this accounts for nearly 70 percent of US GDP, increased by 2.4 percent annually during the third quarter of this year.  Furthermore, retail sales rose in each of the three months in the third quarter with a further detail indicating that this rise is broad based.  Read More…

Beware Of Light Shinning On Retail ETFs

Despite a weak job market, consumers opened their wallets and started spending once again, shinning a ray of light on exchange traded funds (ETFs) which track the retail sector, such as the SPDR S&P Retail ETF (XRT), the Retail HOLDRs (RTH) and the PowerShares Dynamic Retail Portfolio (PMR). 

According to Thompson Reuters, comparable sales for retail stores open at least a year rose 3.3% in August, better than the 2.5% that was forecasted.  Furthermore, it appears that this outperformance in the retail sector came at the expense of consumer savings rates, which dipped by 6% in August.  Read More…

Retail Health Remains Questionable

As the economy starts to recover and consumers start to come out of their shells, retailers have reaped the benefits of extra spending.  Some are even taking on additional efforts to retain these customers and their spending habits; however, the likelihood that these trends are sustainable is unclear.

According to the most recent report issued by the Commerce Department, a range of retailers boasted month over month gains, enabling the sector as a whole to show seasonally adjusted increases of 0.3% in February over the prior month.  Additionally, a Thomson Reuters index of 28 retailers suggests that sales at stores open at least one year, rose 4% in February compared with a year ago.  

Of all the retail sub-sectors, electronics and appliances saw the largest gains followed by groceries.  Despite wary consumer sentiment over the health of the economy, illustrated by the recent decline in the University of Michigan/Reuters consumer-sentiment index, which registered at 72.5, some retail experts suggest that consumers see the light at the end of the tunnel and are starting to upgrade their appliances and adding additional items to their shopping baskets at the checkout line. Read More…

Retail ETFs May Have Muddy Path

By Kevin Grewal

The retail sector posted its third consecutive monthly sales gain as department stores posted sales revenues which beat analyst expectations; however, the road ahead still remains bumpy. 

Department store giant Macys Inc. (M) as well as discount store Target (TGT), both reaped the benefits of an increase in traffic and a jump in the average amount spent by consumers, pushing increases in sales by 4% and 2.4%, respectively.    Additionally, Wal-Mart (WMT) stated that it is expecting to pay back its investors by increasing its annual dividend by 11%. 

Increases in consumer spending, and hence retail sales, have been linked to an expected increase in average hourly earnings and average hours worked, giving a boost to disposable income.  Additionally, some sector experts suggest that an increase was inevitable due to such poor sales figures in the month before.  Read More…

Retail Poses An Opportunity

By Kevi n Grewal

Most recent data indicates that U.S. retail sales rose 3.6% from November 1 through December 24 as many loosened the grip on their wallets and spent a couple of extra dollars during the holiday season.

To add to retail’s appeal, the International Council of Shopping Centers expects final holiday sales numbers to increase by 1% from last year and sales numbers for the month of December to jump 2%.  The holiday season, in conjunction with a boost in consumer confidence, increases in disposable income and the loosening of credit markets are all positive forces that should support a favorable trend in the sector. Read More…

Retailers Entice But Fall Short

By Kevin Grewal

Retailers all over the nation successfully enticed consumers on Black Friday as shoppers flooded stores purchasing Christmas gifts and capitalizing on blockbuster deals, but their slashing of prices and massive marketing scheme didn’t give retailers the holiday boost that they needed. Read More…


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