The Hottest Sector of the Stock Market in 2018 Is One Being Crushed By Amazon
Amazon who?

The prospect for higher consumer spending this spring thanks to tax reform is more important to retailers than continued destruction by Amazon (AMZN) .

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) and Action Alerts Plus holding Broadcom (AVGO) ). 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) . 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) , Kohl's (KSS) and Foot Locker (FL) saw their shares hammered on their respective earnings days. 

Time to fade this rally...

More from Opinion

Nvidia's iPhone-Like Strategy for Growing Graphics Chip Sales Could Pay Off

Nvidia's iPhone-Like Strategy for Growing Graphics Chip Sales Could Pay Off

Wednesday Wrap-Up: What Is Tilray Smoking?

Wednesday Wrap-Up: What Is Tilray Smoking?

Apple's iPhone XS and XS Max Are Good Enough to Win Over Owners of Older iPhones

Apple's iPhone XS and XS Max Are Good Enough to Win Over Owners of Older iPhones

Tuesday Turnaround: It's All About Microsoft...And Dogs?

Tuesday Turnaround: It's All About Microsoft...And Dogs?

Oracle Slumps After Missing Revenue Estimates: 7 Key Takeaways

Oracle Slumps After Missing Revenue Estimates: 7 Key Takeaways