NEW YORK (
TheStreet) -- Cyclical stocks linked to consumer spending are leading the market higher, which bodes well for further gains in U.S. equities.
Consumer Discretionary Select Sector SPDR
(XLY) and SPDR S&P Retail
(XRT) have hit record highs this week on positive economic data and improved corporate outlooks over the next year.
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The consumer-discretionary exchange-traded fund is most heavily weighted by Amazon
(AMZN) , Comcast
(CMCSA) , Disney
(DIS) . Home Depot
(HD) and McDonald's
The the retail ETF, which is equal weighted, contains CarMax
, Family Dollar Stores
, Lands' End
The chart below shows that both ETFs have outperformed SPDR S&P 500
during the past month, signaling that economically sensitive sectors underlie the gains in U.S. equities.
data by YCharts
Consumer stocks were aided this week by a report that the U.S. consumer-confidence figure improved unexpectedly, reaching its highest level since October 2007. The Conference Board said on Tuesday that its index of consumer confidence rose to 92.4 in August from a reading of 90.3 in July.
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