Big Lots, Torrid, Etsy and Target fall on down day for retail sector
Joe Raedle
Select consumer stocks struggled on Tuesday as concerns over the pace of discretionary spending impacted sentiment.
Decliners included Big Lots (BIG) -6.55%, Kohl's (KSS) -5.19%, Torrid Holdings (CURV) -5.17%, Children's Place (PLCE) -4.89%, Genesco (GCO) -4.59%, Hibbett (HIBB) -3.38%, Etsy (ETSY) -2.48%, Target Corporation (TGT) -2.45%, Dollar General (DG) -2.04%, Dillard's (DDS) -1.99%, Dollar Tree (DLTR) -1.86%, eBay (EBAY) -1.65%, BJ's Wholesale Club (BJ) -1.22%, and PriceSmart (PSMT) -1.13%.
U.S. consumer spending actually increased more than expected in April, but there have been more than a few lackluster outlooks from the retail sector in May to cool off sentiment. Notably, Dollar Tree (DLTR) lowered it profit guidance for the year.
While the unrelenting inflation pressures on consumes have been well documented, Seeking Alpha analyst Macrotips Trading reminded that the retail sector has another headwind to confront this year. The warning was sounded that student loan payments that have been paused for over three years are set to resume before the end of August in a development that will financially pressure as many as 43M Americans.
Despite all the digital red paint splashed across the retail sector, defensive favorite Walmart (WMT) notched a 0.47% gain as of 11:00 a.m.
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