NEW YORK (TheStreet) -- Global markets are still dealing with the aftermath of last week's vote by the U.K. to exit the European Union, with many countries wondering how the decision will impact various sectors with exposure to Europe.

U.S. indexes sold off on Friday and Monday after the vote, however they are rebounding today. By 10 a.m. ETD the S&P 500 had added 23 points, the NASDAQ was up by 70 points and the Dow Jones was higher by 200 points, having lost 900 points over the last two trading days.

With indexes appearing to bounce back the focus now shifts to individual sectors. CNBC's "Squawk on the Street" hosted two analysts this morning, who discussed what impact the Brexit vote will have on the U.S. retail sector be it about currencies, tourism, or just confidence in general.

"There's a few aspects to consider this, I would say yes, in terms of currency translational risk is a key factor," Cowen and Co. analyst Oliver Chen said on "Squawk on the Street."

"In retail about 10% of revenues are exposed to Europe, so that could be about a 1% to 2% hit to earnings as well as overall revenues," Chen continued.

Chen went on to discuss the "psychological factors" impacting retail, noting that tourism has been a "problem spot" as a result of the stronger dollar. Tourist related stocks such as Macys (M) - Get Report , Tiffany (TIF) and Hudson Bay are areas Cowen thinks could be cautious.

"On the other hand, we do like Ross Stores (ROST), we like Ulta (ULTA), we like Target (TGT) as well because they're domestic retailers and they're lower beta," Chen continued. He noted that the firm is encouraging investors to think about lower beta, higher free cash flow yields and domestic U.S. stocks.

Macquarie Capital analyst Laurent Vasilescu weighed in on the disagreement between the economic data and the market view on the positioning of the U.S. consumer as there was a surprise upside in confidence as retail stocks still struggle.

"One of the things I would like to point out is some of the larger global names have actually less exposure to the U.K. market," Vasilescu said. "For example Nike (NKE), VF Corp (VFC) that owns Vans and Timberland, Ralph Lauren (RL), we estimate that about 3% to 4% of their revenues come from the U.K. market, so less exposed."

Vasilescu pointed out that there are some smaller names, such as Fossil (FOSL), that the firm estimates has a high single digit percentage of revenues coming from the U.K. market.

Both analysts agreed that health and wellness is still a good global trend. "We think there's structural positives to thinking about health and wellness, as well as beauty," Chen commented.

"As we think about how to play this market you want to look for structural trends, and yes retail is very cautious. We're having a problem with mall traffic, we have the Amazon (AMZN) risk, we have rising wages...we're facing a new era in retail in so many ways, so this just another layer of anxiety to add to the consumer," Chen concluded.