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What Nike and Pepsi's Quarters Say About Retail

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The majority of the retail sector has not reported earnings yet. 

But, is there any part of the broader retail sector that is giving Amanda Agati, co-Chief Investment Strategist at PNC, hope?

"Well, so what I would say is there isn't one specific part of retail that's necessarily the bright and shining star," answered Agati. 

"We think there's pretty broad-based strength across retail. I think what gives us a little bit of hope and comfort that the consumer story will continue for quite some time is that we had a few early reporters. So, Nike (NKE) - Get Nike Inc. Report and Pepsi (PEP) - Get PepsiCo Inc. Report , in particular, reported really strong results, gross margin, expansion power, much better than expected results. And, not to mention they have fairly heavy exposure to China. So for all the fears around the U.S.-China trade tensions leading to kind of the end of the cycle, if you will. We haven't seen that played out just yet. And so we don't think that the tariff and trade story is really going to be the dominant, you know, headwind in Q2, like perhaps the market is fearing that it is," she continued.

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