Or such is the message from retail stocks right now.
The S&P Retail Index is up a cool 13.5% this year, making it the best-performing sector of the S&P 500. The performance of retail stocks have blown away the number two performer, semiconductor and semiconductor equipment, which has notched a 7.8% gain.
Surging retail stocks is surprising for several reasons beyond the threat of Action Alerts Plus holding Amazon.
First, the retail sector has been absent bullish takeover news as seen in the semiconductor space (see Microsemi (MSCC) deal, ongoing battle between Qualcomm (QCOM) - Get Report and Action Alerts Plus holding Broadcom (AVGO) - Get Report ). The only thing that qualifies as a retail deal this year is supermarket chain Albertson's buying up the dying carcass that is Rite-Aid (RAD) - Get Report . That doesn't qualify as exciting in the same vein as Amazon buying Whole Foods last year.
Meanwhile, fourth-quarter earnings season for retailers has been mixed at best. J.C. Penney (JCP) - Get Report , Kohl's (KSS) - Get Report and Foot Locker (FL) - Get Report saw their shares hammered on their respective earnings days.
Time to fade this rally...