This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Consumer Spending Drives Stock Market to Record Highs

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.

The consumer-discretionary exchange-traded fund is most heavily weighted by Amazon (AMZN) , Comcast (CMCSA) , Disney (DIS) . Home Depot (HD) and McDonald's (MCD)

The the retail ETF, which is equal weighted, contains CarMax (KMX) , Family Dollar Stores (FDO) , GameStop (GME) , Lands' End (LE) and PetSmart (PETM) .

Must Read: 10 Stocks Carl Icahn Loves in 2014

The chart below shows that both ETFs have outperformed SPDR S&P 500 (SPY) during the past month, signaling that economically sensitive sectors underlie the gains in U.S. equities.

 XLY Chart
XLY 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.

>>Read More: It’s No Coincidence – Stocks and Car Sales Are Both Frothy

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
XRT $42.92 -2.00%
XLY $78.70 -0.64%
AAPL $93.21 -0.44%
FB $117.80 -0.22%
GOOG $701.26 0.80%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs