Vanguard Consumer Staples ETF (ARCA: VDC)

Ultime notizie per Vanguard Consumer Staples ETF (ARCA:VDC)

Vanguard Consumer Staples ETF

Vanguard Consumer Staples ETF - DNQ

Consumer Defensive

Consumer Cyclical

Healthcare

Basic Materials

Industrials

The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index/Consumer Staples 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the consumer staples sector, as classified under the Global Industry Classification Standard. The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.

Procter & Gamble Co/The

Costco Wholesale Corp.

Walmart, Inc.

Coca-Cola Co/The

Pepsico Inc

Philip Morris International Inc

Mondelez International Inc

Altria Group Inc

Colgate-Palmolive Co

Target Corp.

Costco Wholesale Corp

Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) shares <a target="_blank" href="https://www.benzinga.com/25/04/44759232/this-walmart-analyst-begins-coverage-on-a-bullish-note-here-are-top-5-initiations-for-friday" rel="noreferrer noopener">are trading higher on Thursday</a>.
The company has reportedly made a pact to open a second office space in <a href="https://www.benzinga.com/insights/analyst-ratings/25/04/44759117/28-analysts-assess-walmart-what-you-need-to-know" target="_blank" rel="noreferrer noopener">Chennai, a city in southern India.</a>
Reuters reports that while the retail behemoth does not operate supermarkets in India yet, it has tech hubs in Indian cities such as Chennai and Bengaluru.&nbsp;
According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, Walmart stock has gained over 56% in the past year. Investors can gain exposure to the stock via Vanguard Consumer Staples Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>).
Apart from development plans in India, Walmart marked a major expansion of its logistics footprint on Thursday with the opening of a <a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/b44864979/walmart-opens-new-distribution-center-in-jacksonville-florida" rel="noreferrer noopener">new distribution hub in Jacksonville, Florida.</a>
Also Read: <a target="_blank" href="https://www.benzinga.com/etfs/sector-etfs/25/04/44868472/pillar-of-americas-cyber-security-lost-funding-temporarily-what-investors-should-know-about-cve-program-funding-extension" rel="noreferrer noopener">Pillar Of America&#8217;s Cyber Security Lost Funding Temporarily: What Investors Should Know About CVE Program, Funding Extension</a>
The one-million-square-foot facility is designed to streamline deliveries to Sam's Club locations throughout the Southeast and Puerto Rico.
The warehouse will support 18 Sam's Club stores across Florida, Georgia and South Carolina, along with seven additional clubs in Puerto Rico. Situated just minutes from the Port of Jacksonville, the facility also plays a critical role in routing imported goods to four regional distribution centers.
Frank Herrera, general manager of the new center, said the project is more about opportunity.
"Each position brings a pathway for opportunity at Walmart and Sam's Club," Herrera stated.
The facility has created numerous new full-time jobs, which come with access to Walmart's total rewards package, per a press release.
WMT Price Action: Walmart shares are trading higher by 2.85% to $93.79 at publication on Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/04/44862662/trump-pressures-fed-as-ecb-delivers-7th-straight-rate-cut" target="_blank" rel="noreferrer noopener">Trump Pressures Fed As ECB Delivers 7th Straight Rate Cut</a></li>
</ul>
Photo: Shutterstock

Equities

News

Markets

Movers

General

What's Going On With Walmart Stock Today?

WIIM

BRBR

CASY

Coca-Cola European Partners plc Ordinary Shares

CCEP

COKE

FIZZ

PSMT

SISI

SMPL

Shares of several consumer staples stocks are trading higher. The sector may be moving up as investors gravitate towards more defensive assets following market-wide volatility and uncertainty.

Trade tensions, <a href="https://www.benzinga.com/topic/federal-reserve">Fed policy shifts</a> and weakening sentiment are creating a stormy outlook for the global economy.
JPMorgan's Bruce Kasman just upped the ante on recession risks, pegging the odds of a 2025 U.S./global downturn at 40%. That's not just a number—it's a warning shot for investors navigating an increasingly volatile landscape.
<h2 class="wp-block-heading">Trade War Fears Are Back &#8211; ETFs Are Already Reacting</h2>
Kasman's outlook hinges on one major factor: trade policy. With tariffs expected to push the effective U.S. rate above 10%, he sees a 0.5% GDP drag next year. But the real risk? A domino effect. 
If business sentiment cracks, capital expenditures slow and inflation limits Fed maneuverability, markets could turn defensive fast.
Investors aren't waiting for confirmation &#8211; ETF flows are already shifting. The iShares MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EEM#NYSE">EEM</a>) has seen a surge in outflows as investors brace for trade turbulence. 
Meanwhile, defensive plays like the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) and iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) are catching bids as risk appetite wanes.
Read Also: <a href="https://www.benzinga.com//node/44449713">Jerome Powell&#8217;s Stagflation Fears, Mark Cuban&#8217;s Economic Queries, And Ray Dalio&#8217;s Debt Warning: This Week In Economics</a>
<h2 class="wp-block-heading">Can The Fed Hold The Line?</h2>
The Fed isn't rushing to cut rates despite rising trade war concerns. Kasman notes that while policymakers remain "asymmetric" &#8211; ready to ease in a labor market downturn but unwilling to hike on strong growth &#8211; this stance leaves little cushion if sentiment nosedives.
That's a potential headwind for growth-focused ETFs like Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which relies on a Fed-friendly backdrop.
But it's not all doom and gloom. A front-loaded boost in global trade is temporarily lifting manufacturing ETFs, with the Industrial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) seeing inflows as global industrial production spikes.
The question is: how long does that last before trade war fears fully set in?
<h2 class="wp-block-heading">ETF Playbook For Recession Risks</h2>
With uncertainty mounting, ETF investors are playing both offense and defense. Those bracing for more pain are rotating into SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>), while bargain hunters are eyeing SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) for potential buy-the-dip opportunities.
Bottom line? 
The 40% recession probability isn't just a macro call &#8211; it's already reshaping ETF positioning. If sentiment sours further, this shift is only getting started.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com//node/44450390">Charlie Munger&#8217;s Investment Wisdom: &#8216;If People Weren&#8217;t So Often Wrong, We Wouldn&#8217;t Be So Rich&#8217;</a></li>
</ul>
Photo: Shutterstock

Analyst Color

Macro Economic Events

Sector ETFs

Broad U.S. Equity ETFs

Emerging Market ETFs

Economics

Federal Reserve

Analyst Ratings

ETFs

iShares Trust Barclays 20+ Year Treasury Bond Fund

Trade Wars, Fed Moves And A 40% Recession Risk - Is Your Portfolio Ready?

The bond market is flashing warning signs, and investors are taking notice. <a href="https://www.benzinga.com/markets/25/03/44211421/us-economy-teetering-recession-may-be-looming-as-bond-market-reacts-to-trump-policies">Short-term Treasury yields have dipped sharply</a> as concerns about an economic slowdown grow, and analysts warn that a Federal Reserve rate cut may be on the horizon. Historically, signals like these have preceded recessions, prompting investors to shift toward defensive assets.
For those looking to safeguard their portfolios,<a href="https://www.benzinga.com/etfs"> ETFs that focus on stability</a> and essential industries can be a smart choice. Whether it&#8217;s low-volatility stocks, utilities, consumer staples, or government bonds, these ETFs help minimize risk while keeping your money at work. Let's explore the top options for weathering a potential downturn.
1. iShares MSCI USA Min Vol Factor ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/USMV#BATS">USMV</a>)
For investors looking to stay in the stock market but reduce risk, the iShares MSCI USA Min Vol Factor ETF is a strong pick. This ETF focuses on large- and mid-cap stocks that have historically exhibited lower volatility. It's designed to limit downside risk, making it a great choice for risk-averse investors.
USMV's portfolio includes firms from sectors like technology, financials, healthcare, and consumer staples. While this ETF helps shield investors from large losses during downturns, it also means less upside potential in booming markets. USMV has a year-to-date return of 5.5% and a 12-month return of 13.5%, proving its ability to hold up well in uncertain times. During the downturn of 2020, this ETF was able to pare the losses within a year of its 2020 peak (February 21, 2020).
Also Read: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/03/44165367/how-to-ride-out-market-turbulence-with-these-5-low-beta-etfs">How To Ride Out Market Turbulence With These 5 Low-Beta ETFs</a>
2. Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)
The utilities sector is often a safe haven during economic downturns. The Utilities Select Sector SPDR Fund offers diversified exposure to this sector, holding 31 companies. Its top five positions make up about 39% of its portfolio.
XLU has a low expense ratio of 0.09% and provides a dividend yield of 2.8% as of 2025. Since utility services like electricity and water remain in demand regardless of economic conditions, this ETF is a solid defensive choice. Over the past year, the ETF has delivered a 21.71% return.
3. Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>)
Consumer staples companies produce essential goods like food, beverages, and household products, which people buy regardless of the economic climate. The Vanguard Consumer Staples ETF offers exposure to this sector, holding 103 stocks while balancing exposure to industry giants like Coca-Cola (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>) and Costco Wholesale Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>).
With an expense ratio of just 0.09%, VDC is an affordable way to invest in recession-resistant stocks. While consumer staples ETFs tend to be top-heavy, VDC provides a well-rounded mix of large and mid-sized companies.
The Market Signals You Should Watch
While defensive ETFs can help protect your portfolio, it's also important to understand why recession concerns are growing.
Investors have been moving into short-dated Treasuries, signaling concerns about an economic slowdown. Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-03-09/the-bond-market-s-trump-trade-is-looking-like-a-recession-trade?srnd=homepage-americas&amp;sref=TBDibEcD">reports </a>that the Federal Reserve may start cutting interest rates as early as May to counteract slowing growth.
The inverted yield curve, where short-term bond yields exceed long-term yields, flashed warning signs in February, as the spread between three-month treasury yields and those of 10-year notes inverted last week. Historically, this has been a strong predictor of a recession knocking at the door. The curve had inverted in 2019, right before the economic downturn in 2020, according to Reuters.
Meanwhile, indicators such as the CNN Fear &amp; Greed Index <a href="https://edition.cnn.com/2025/03/10/investing/us-stocks-drop-after-trump-says-he-wont-rule-out-a-recession/index.html">dropping </a>into &#8220;Extreme Fear&#8221; territory and the Cboe Volatility Index (VIX) <a href="https://www.msn.com/en-us/money/markets/vix-surge-above-25-implies-above-average-but-far-from-perilous-recession-risk/ar-AA1ACR21?ocid=finance-verthp-feeds">spiking </a>to more than 25 reflect heightened investor anxiety.
Even Warren Buffett seems cautious, as Berkshire Hathaway is<a href="https://www.benzinga.com/markets/equities/25/03/44212672/jamie-dimon-cashed-out-234-million-in-jpmorgan-stock-warren-buffett-stockpiled-334-billion-in-cash-weeks-later-markets-crashed-coincidence"> sitting on record cash reserves</a> while trimming long-held positions.
Final Thoughts: Stay Prepared
Preparing your portfolio in advance rather than reacting at the last minute can help mitigate potential losses during economic downturns. Incorporating low-volatility equity ETFs, utility, and consumer staples funds can provide a more resilient foundation.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/25/03/44224174/wall-streets-worst-week-since-september-5-etfs-that-defied-the-market-slump">Wall Street&#8217;s Worst Week Since September: 5 ETFs That Defied The Market Slump</a></li>
</ul>
Photo: Shutterstock

COST

USMV

3 ETFs To Help You Navigate Market Volatility, Recession Risks

CALM

MDLZ

Shares of consumer staples stocks are trading higher. Strength in the sector may be due to defensive rotation as investors assess tariff uncertainty and recent economic data.

Mounting global trade tensions are leading to sharp market fluctuations as investors are scrambling for ways <a href="https://www.benzinga.com/topic/trade-war">to protect their portfolios</a>. 
The U.S. has imposed tariffs on major trade partners, including Mexico, Canada, and China, leading to economic uncertainty. 
As a result, <a href="https://www.benzinga.com/etfs">ETFs have emerged</a> as a safe option for those looking to hedge against volatility while maintaining diversified exposure to various asset classes.
Also Read: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/02/43598271/5-etfs-that-beat-market-turmoil-with-gains-last-week">5 ETFs That Beat Market Turmoil With Gains Last Week</a>
<ul>
<li>SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>): Gold has long been a preferred asset during market turmoil. The SPDR Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) provides direct exposure to gold, which often rises with the rise of uncertainties, making it a strong hedge against economic instability. The ETF price has grown 42.88% in the past year.</li>
</ul>
<ul>
<li>Invesco S&amp;P 500 Low Volatility ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPLV#NYSE">SPLV</a>): For those who want equity exposure with reduced volatility, the Invesco S&amp;P 500 Low Volatility ETF selects stocks with historically lower price fluctuations, aiming for steadier performance. The fund boasts a 1-year price return of 13.72%.</li>
</ul>
<ul>
<li>Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>): Consumer staples remain resilient in uncertain economic conditions, as everyday essentials will continue to be in demand. The Vanguard Consumer Staples ETF includes key players like Procter &amp; Gamble (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) and Coca-Cola (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), offering a defensive strategy against economic downturns.</li>
</ul>
<h3 class="wp-block-heading">Market Turbulence from the Trade War</h3>
The recent imposition of tariffs by the U.S. on major trade partners—Mexico, Canada, and China—has injected significant uncertainty into the markets. With 25% tariffs on Canadian and Mexican imports and a 10% levy on Chinese goods, equities initially reacted negatively. Although a temporary pause on tariffs for Mexico and Canada provided a brief market recovery, it is widely believed that Trump will go ahead with the policies one day or the other.
In another step in his trade policy overhaul, Reuters reported that on Feb. 9, Trump said he will introduce fresh <a href="https://www.benzinga.com/government/regulations/25/02/43592144/us-steel-aluminum-stocks-rally-as-trump-revives-25-tariff-plan">25% tariffs </a>on all steel and aluminum imports into the U.S. These tariffs will add to the existing metals duties.
Strong retaliatory <a href="https://www.benzinga.com/news/global/25/02/43600852/china-sets-sights-on-us-tech-companies-as-trade-tensions-rise">tariffs from China</a>, and sanction plans on U.S. goods by Canada and Mexico are adding to the nail-biting situation.
Additionally, with the Fed keeping interest rates unchanged in their recent meeting led investors to lower their expectations for lower rates, throwing the market into more uncertainty.
According to the CME <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">FedWatch </a>Tool, the Fed has a 91.5% probability of keeping the rates unchanged at 4.25-4.5% in March, while there&#8217;s an 8.1% chance that the Fed cut the rate to 4%-4.25% in its March meeting.
While trade conflicts can cause market swings, investors can mitigate risks by allocating capital to ETFs that focus on keeping investors&#8217; money safe. Whether through gold, Treasuries or defensive equities, these funds offer more opportunities to diversification and manage risks as global trade policies evolve.
Read Next:<a href="https://www.benzinga.com/etfs/new-etfs/25/02/43599972/new-bitcoin-etf-limits-losses-to-20-offers-risk-controlled-exposure"> </a>
<ul>
<li><a href="https://www.benzinga.com/etfs/new-etfs/25/02/43599972/new-bitcoin-etf-limits-losses-to-20-offers-risk-controlled-exposure">New Bitcoin ETF Limits Losses To 20%, Offers Risk-Controlled Exposure</a></li>
</ul>
Photo: Shutterstock

EEMV

GOVT

PowerShares S&P 500 Low Volatility Portfolio

SPLV

As Trade War Heats Up, These ETFs Offer A Safe Harbor For Investors

The year of milestones, 2024, has seen an unperturbed rise in the current bull market, which is nearly <a href="https://www.benzinga.com/24/12/42430296/carson-researchs-50-year-study-suggests-that-the-26-months-old-bull-market-is-far-from-over">26 months</a> old. It is higher by more than 70% from the mid-October 2022 lows. As we wrap up the year with the possibility of a &#8216;Santa Rally,&#8217; let&#8217;s recap 2024&#8217;s landmark junctures.
<h3 class="wp-block-heading">Major U.S. Benchmarks Scale Fresh Records</h3>
The S&amp;P 500 Index has made 57 new all-time highs this year, hitting the last one on Dec. 6, 2024. Also, &#8220;2024 would go down as the best election year return ever,&#8221; said Ryan Detrick, the chief market strategist at Carson Research in a note.
&#8220;Going back 50 years, we found five other bull markets that had lasted at least this long and the shortest any of them lasted was five total years. Think of it like a cruise ship — once it gets moving, it can be quite hard to stop,&#8221; added Detrick
While the S&amp;P 500 index was up 25.96% on a year-to-date basis as of Dec. 23 close, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose by 25.82% in the same period.
The Dow Jones Industrial Average index, on the other hand, hit a record eight 1,000-point milestones this year. It started the year around the 37,000 level and breached the 45,000 level at the beginning of December. It took only seven trading days for the index to go from 44,000 to 45,000, the second fastest 1,000-point milestone ever. Following that the index also saw one of its longest 10-day losing streak, the first ever since 1974.
Dow was up 13.77% year-to-date as of the Dec. 23 close, whereas the SPDR Dow Jones Industrial Average ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) gained 13.74% in the same period.
The Nasdaq 100 index which includes all the &#8216;magnificent seven&#8217; stocks, unlike Dow, rose 29.98% year-to-date as Dec. 23 close. The ETF tracking the index, Fidelity NASDAQ Composite Index ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ONEQ#NASDAQ">ONEQ</a>) rose by 33.85% in the same period. Whereas, the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose by 29.88% in 2024.
The smallcap index Russell 2000 was up 11.16% over the year, while iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) was up 10.97% in the same period as of the Dec. 23 close.
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-1024x576.png" alt="" class="wp-image-705432" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
See Also: <a href="https://www.benzinga.com/24/12/42430296/carson-researchs-50-year-study-suggests-that-the-26-months-old-bull-market-is-far-from-over">Is The 26-Month Bull Market Over? Here Is What Carson Research&#8217;s 50-Year Old Study Tells Us</a>
<h3 class="wp-block-heading">U.S. Market Trumps The World</h3>
Among the developed economies, the S&amp;P 500 remains the best index with a 25.96% gain on a year-to-date basis, outperforming all the other developed market indices.
While the <a href="https://x.com/RyanDetrick/status/1871317802306707882">first </a>year of a new president&#8217;s term has usually been strong since 1897, the returns during year one of a second term haven&#8217;t been very good overall, said Detrick.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Returns during year one of a second term haven&#39;t been very good overall, but way better lately. Down 5 in a row, but now up 4 in a row. &#x1f914; <a href="https://t.co/aUrCbf22Gw">pic.twitter.com/aUrCbf22Gw</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1871320275129967103?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Developed Markets</td>
<td>Indices</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>United States</td>
<td>S&amp;P 500</td>
<td>25.96%</td>
</tr>
<tr>
<td>Germany</td>
<td>DAX</td>
<td>18.36%</td>
</tr>
<tr>
<td>Japan</td>
<td>Nikkei 225</td>
<td>17.27%</td>
</tr>
<tr>
<td>Hong Kong</td>
<td>Hang Seng</td>
<td>19.71%</td>
</tr>
<tr>
<td>Spain</td>
<td>IBEX 35</td>
<td>12.31%</td>
</tr>
<tr>
<td>United Kingdom</td>
<td>FTSE 100</td>
<td>4.94%</td>
</tr>
<tr>
<td>Switzerland</td>
<td>Swiss Market</td>
<td>2.85%</td>
</tr>
<tr>
<td>France</td>
<td>CAC 40</td>
<td>-3.43%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<h3 class="wp-block-heading">Communication, Consumer Discretionary, And Technology Lead Gains In 2024</h3>
Tracking the exchange-traded funds that track the major sectors in the U.S. market, communication services emerged as the top sector for the year, followed by consumer discretionary and technology. The information technology sector has the highest weight of 31.3% in the S&amp;P 500, followed by financials a t13.9%.
BlackRock said that they see technology companies&#8217; earnings performing well in 2025. &#8220;We are overweight as the AI theme and earnings growth broaden. Valuations for AI beneficiaries are supported by tech companies delivering on earnings.&#8221;
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Cyclical Sectors</td>
<td>ETFs</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Communication Services</td>
<td>Communication Services Select SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>35.97%</td>
</tr>
<tr>
<td>Consumer Discretionary</td>
<td>Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>)</td>
<td>27.21%</td>
</tr>
<tr>
<td>Technology</td>
<td>Technology Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>27.01%</td>
</tr>
<tr>
<td>Financials</td>
<td>Invesco S&amp;P 500 Equal Weight Financial ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPF#NYSE">RSPF</a>)</td>
<td>23.48%</td>
</tr>
<tr>
<td>Industrials</td>
<td>Vanguard Industrials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIS#NYSE">VIS</a>)</td>
<td>17.80%</td>
</tr>
<tr>
<td>Real Estate</td>
<td>Real Estate Select Sector SPDR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>0.27%</td>
</tr>
<tr>
<td>Materials</td>
<td>Materials Select Sector SPDR Fund (ARC: XLB)</td>
<td>-0.37%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-1024x576.png" alt="" class="wp-image-705439" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
See Also: <a href="https://www.benzinga.com/markets/equities/24/11/42383725/trump-administrations-deregulation-efforts-to-lift-energy-oil-and-gas-sectors-ai-frenzy-to-aid-faang-stocks-and-nvidia-says-fintech-insider">Trump&#8217;s Deregulation Efforts To Benefit Energy, Oil And Gas Sectors, While AI Frenzy Will Boost FAANG Stocks And Nvidia, Says Fintech Insider</a>
Among the defensive sectors, utilities emerged as a winner, whereas energy was an underperformer. Consumer staples, energy, and utilities take up 5.7%, 3.4%, and 2.5% weight, respectively in the S&amp;P 500 index.
As per Morgan Stanley, the energy sector faces a divided future. Trump's deregulation could benefit traditional energy, but the outlook for oil is uncertain due to potential oversupply and weak global demand, especially from China. In contrast, natural gas may see growth from strong European demand and increased domestic use for electrification and AI-powered data centers. The clean energy sector could face challenges, if Trump rollbacks Biden's 2022 Inflation Reduction Act tax credits. However, a full repeal seems unlikely due to the benefits for Republican states.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Defensive Sectors</td>
<td>ETFs</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Utilities</td>
<td>Vanguard Utilities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>)</td>
<td>18.23%</td>
</tr>
<tr>
<td>Consumer Staples</td>
<td>Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>)</td>
<td>10.04%</td>
</tr>
<tr>
<td>Healthcare</td>
<td>Vanguard Health Care ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>)</td>
<td>0.63%</td>
</tr>
<tr>
<td>Energy</td>
<td>The Energy Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>-0.96%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-1024x576.png" alt="" class="wp-image-705442" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h3 class="wp-block-heading">Top S&amp;P 500 Performers In 2024</h3>
Palantir was the top performer within the S&amp;P 500 index this year, as it zoomed 386.67% year-to-date, as of Dec. 23 close. Vistra and Nvidia followed Palantir to advance 269.82% and 189.95% in the same period.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>S&amp;P 500 Stocks</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>)</td>
<td>386.67%</td>
</tr>
<tr>
<td>Vistra Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>)</td>
<td>269.82%</td>
</tr>
<tr>
<td>NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>189.95%</td>
</tr>
<tr>
<td>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>)</td>
<td>162.80%</td>
</tr>
<tr>
<td>Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>)</td>
<td>148.04%</td>
</tr>
<tr>
<td>United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>)</td>
<td>144.30%</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>114.07%</td>
</tr>
<tr>
<td>Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>)</td>
<td>113.03%</td>
</tr>
<tr>
<td>Targa Resources Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRGP#NYSE">TRGP</a>)</td>
<td>106.40%</td>
</tr>
<tr>
<td>Howmet Aerospace Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HWM#NYSE">HWM</a>)</td>
<td>105.73%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-1024x576.png" alt="" class="wp-image-705446" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h3 class="wp-block-heading">U.S. Dollar Surges Over 6% In 2024</h3>
The Dollar index was up 6.72% year-to-date with a 52-week range of 100.1570 to 108.5410 per unit. If the Greenback can hold on to these gains, the currency would leave behind the second-best year since 2015.
The UDS&#8217;s demand has been rising due to the &#8220;Uncertainties arising from expected Trump's policies and hawkish comments from the Fed towards rate cycle,&#8221; said Kunal Sodhani, vice president of the global trading center at Shinhan Bank.
According to Franklin Templeton, &#8220;The Fed easing cycle will be a dominant factor for the USD. The two main comparisons we draw against the Fed cyclically, interest-rate-wise, are emerging markets, and Japan.&#8221;
WisdomTree Bloomberg US Dollar Bullish Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USDU#NYSE">USDU</a>) was up 13.24% on a year-to-date basis, as of Dec. 23 close, where as Invesco DB US Dollar Index Bullish Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) advanced by 7.21% in the same period.
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-1024x576.png" alt="" class="wp-image-705448" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next
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<li><a href="https://www.benzinga.com/24/12/42642834/market-breadth-turns-positive-after-a-rare-14-day-negative-streak-history-suggests-gains-ahead">Market Breadth Rebounds As Risk Appetite Makes A Comeback: This Analyst Predicts Gains Ahead After S&amp;P 500&#8217;s Record Negative Streak</a></li>
</ul>
Photo courtesy: Shutterstock

AVGO

AXON

SPDR Dow Jones Industrial Average ETF Trust

NVDA

Fidelity NASDAQmposite Index Fund ETF-Tracking NASDAQmposite Index

ONEQ

PLTR

RSPF

TRGP

USDU

PowerShares DB US Dollar Index Bullish Fund

XLRE

S&P 500 Hits 57 All-Time Highs In Record-Breaking 2024: Magnificent 7 Drive 30% Of Nasdaq's Surge

On Thursday, JP Morgan analyst Christopher Horvers raised the price target on Costco Wholesale Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>) to $1,090 (from $945 prior) while maintaining an Overweight rating following <a target="_blank" href="https://www.benzinga.com/quote/cost/analyst-ratings" rel="noreferrer noopener">November sales results</a>.
The company reported net sales of $21.87 billion for the retail month of November (four weeks ending December 1, 2024), reflecting a 5.6% <a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/g42326560/costco-wholesale-corporation-reports-november-sales-results" rel="noreferrer noopener">increase from $20.71 billion last year</a>.
For the twelve-week first quarter ending November 24, 2024, net sales reached $60.99 billion, up 7.5% from $56.72 billion last year. Net sales for the first thirteen weeks totaled $66.52 billion, an increase of 7.2% compared to $62.04 billion in the prior year.
E-commerce sales in November were down by an estimated 15 percentage points due to the later timing of Thanksgiving, Black Friday, and Cyber Monday this year compared to last year. This shift resulted in a roughly 1.5% decrease in total and comparable sales.
The analyst writes that they continue to believe that COST remains a core holding due to its unmatched value proposition, characterized by 11% gross margins, a loyal customer base with a ~90% renewal rate, and a global growth opportunity of 2%-3% annually.
The analyst adds that this combination is rare in retail and consumer staples, with the potential to double its current store base. The latter is its GICS classification.
The analyst adds that Costco continues to outperform most of retail in terms of share gains and traffic trends, particularly due to its 70% consumable assortment.
For December, the analyst expects core U.S. comps to be +6.7%, Canada to +8.2%, and Other International to +9.0%, resulting in a total company core comp of +7.2%.
Investors can gain exposure to the stock via Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) and Fidelity MSCI Consumer Staples Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSTA#NYSE">FSTA</a>).
Price Action: COST shares are down 0.49% at $986.06 at the last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42273676/walmart-target-bath-body-works-stand-out-as-black-friday-winners-analysts" target="_blank" rel="noreferrer noopener">Walmart, Target, Bath &amp; Body Works Stand Out As Black Friday Winners: Analysts</a></li>
</ul>
Photo by William James Herath on Shutterstock

Large Cap

Price Target

Trading Ideas

FSTA

Costco's Combo Of Strong Loyalty, Unmatched Value Is Rare In Retail: Analyst

JP Morgan analyst Christopher Horvers expressed views on Walmart Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) strong <a target="_blank" href="https://www.benzinga.com/24/11/42060801/walmart-tops-q3-estimates-ecommerce-growth-shines-with-27-lifts-full-year-forecast" rel="noreferrer noopener">third-quarter FY25 results reported today.</a>
Walmart reported sales of $169.6 billion, beating estimates, with adjusted EPS of $0.58 and global eCommerce sales up 27%.
The company raised FY25 guidance for adjusted EPS to $2.42-$2.47 and sales growth to 4.8%-5.1%, <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">citing strong U.S. performance</a>.
The analyst writes that, similar to prior quarters, Walmart maintains a prudent forecast despite consistent outperformance.
The analyst adds that strong U.S. and international gross margin trends drive structural profitability improvements, <a target="_blank" href="https://www.benzinga.com/quote/WMT/analyst-ratings" rel="noreferrer noopener">supporting their Overweight rating.</a>
Horvers says that ongoing share gains and upward revisions strengthen the bullish case despite FX headwinds and limited SG&amp;A leverage.
The analyst writes that FY guidance suggests fourth-quarter net sales growth of 3.4%-4.5% (vs. Street&#8217;s 3.7%), operating income growth of 5.7%-8.5% (vs. Street&#8217;s 8.7%), and EPS of $0.57-$0.62 (vs. Street&#8217;s $0.66).
Investors can gain exposure to the stock via&nbsp;Vanguard Consumer Staples ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) and&nbsp;Fidelity MSCI COnsumer Staples Index ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSTA#NYSE">FSTA</a>).
Price Action: WMT shares are up 3.74% at $87.22 at the last check Tuesday.
Image via Shutterstock
Read Next:
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<li><a href="https://www.benzinga.com/news/global/24/11/42064198/putin-revises-nuclear-doctrine-for-broader-strikes-after-us-backed-ukrainian-attack-markets-drop-bonds-gain" target="_blank" rel="noreferrer noopener">Putin Revises Nuclear Doctrine For Broader Strikes After US-Backed Ukrainian Attack: Markets Drop, Bonds Gain</a></li>
</ul>

Reiteration

Walmart's Q3 Performance Shows Structural Gains Fueling Future Growth: Analyst

Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) shares are trading higher on Tuesday after the company announced&nbsp;third-quarter results&nbsp;and <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b42058916/walmart-reports-strong-revenue-growth-of-5-5-with-operating-income-growing-faster-at-8-2" rel="noreferrer noopener">raised its fiscal-2025&nbsp;guidance</a>.
The retailer reported adjusted EPS&nbsp;of&nbsp;58 cents,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;53 cents</a>.
Sales were&nbsp;$169.59 billion, up&nbsp;<a target="_blank" href="https://corporate.walmart.com/content/dam/corporate/documents/newsroom/2024/11/19/walmart-releases-q3-fy25-earnings/q3-fy25-earnings-release.pdf" rel="noreferrer noopener">5.5</a>% year over year or 6.2% (at constant currency), beating the consensus of&nbsp;$167.72 billion.
The gross margin rate was up 21 bps, aided by improvement in the Walmart U.S.
Operating income was up&nbsp;$0.5 billion, or&nbsp;8.2%, and up 9.8%&nbsp;year over year&nbsp;(at constant currency) on higher gross margins, growth in membership income, and reduced eCommerce losses.
Global eCommerce sales rose&nbsp;27%, driven by store-fulfilled pickup and delivery as well as marketplace growth. Global advertising business grew&nbsp;28%, including&nbsp;26% for Walmart Connect in the U.S.
Walmart U.S same-store sales climbed by&nbsp;5.3%&nbsp;year over year, excluding fuel, aided by strong broad-based growth in merchandise categories and physical and digital channels.
Read: <a target="_blank" href="https://www.benzinga.com/24/11/42047989/walmart-q3-earnings-preview-will-eps-beat-streak-continue-analysts-says-retailer-should-remain-a-core-holding" rel="noreferrer noopener">Will Walmart&#8217;s Streak Of Earnings Beats Continue Tuesday? Analysts Say Retailer A &#8216;Core Holding&#8217;</a>
At Sam&#8217;s Club, same-store sales rose&nbsp;7.0%&nbsp;year over year, excluding fuel, led by food and health and wellness categories, along with increased transactions and unit volumes.
Doug McMillon, President and CEO, said, &#8220;In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that. Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart.&#8221;
Walmart generated an operating cash flow of&nbsp;$22.9 billion and free cash flow of&nbsp;$6.2 billion&nbsp;in nine months ended October 31, 2024. It ended the quarter with cash and equivalents of&nbsp;$10.0 billion.
Guidance: For FY25, the big box retailer raised its adjusted EPS&nbsp;outlook&nbsp;to&nbsp;$2.42 &#8211; $2.47 (from&nbsp;$2.35 &#8211; $2.43), vs.<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> the consensus of&nbsp;$2.45</a>.
Walmart boosted FY25 net sales (at constant currency) growth&nbsp;guidance&nbsp;to&nbsp;4.8% &#8211; 5.1% from <a target="_blank" href="https://www.benzinga.com//node/40391777" rel="noreferrer noopener">3.75% &#8211; 4.75%&nbsp;earlier</a>.
Investors can gain exposure to the stock via Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) and&nbsp;Fidelity MSCI COnsumer Staples Index ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSTA#NYSE">FSTA</a>).
Price Action: WMT shares are up 3.59% at $87.10 premarket at the last check Tuesday.
Image by Sundry Photography on Shutterstock
Read Next:
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<li><a href="https://www.benzinga.com/24/11/42041663/walmarts-black-friday-cyber-monday-huge-deals-on-electronics-toys-and-more" target="_blank" rel="noreferrer noopener">Walmart Gears Up For Black Friday, Cyber Monday Specials: Major Discounts On Apple MacBooks, Sony TVs</a></li>
</ul>

Earnings

Guidance

Walmart Q3 Earnings: Revenue Beat, eCommerce Growth Shines, Issues Bullish Outlook For FY25

Goldman Sachs analyst Bonnie Herzog lowered Procter &amp; Gamble Company&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) <a target="_blank" href="https://www.benzinga.com/quote/pg/analyst-ratings" rel="noreferrer noopener">first-quarter estimates to reflect softer end markets</a>.
Consequently, the analyst cut the price target to $164 (from $165), with a Neutral rating.
The analyst writes that while scanner trends show resilience for the company and continued growth in the U.S., challenges in international markets like the Middle East and China may offset this.
The analyst anticipates no recovery for SK-II until late 2024, when negative sentiment toward Japanese brands begins to ease.
Herzog is lowering first-quarter estimates, expecting organic sales growth of around 2%, which is expected to be mostly neutralized by FX translation headwinds, leading to flat net sales growth for the quarter.
Moreover, the analyst anticipates slight gross margin expansion supporting 4.7% year-over-year EPS growth to $1.91, down from $1.96 earlier.
The analyst says that due to challenges in Procter &amp; Gamble&#8217;s end markets and a slowdown to 2% growth in fourth-quarter, investor expectations have shifted to the lower end of PG&#8217;s FY25 organic sales growth guidance of 3%-5% (vs. GS/consensus estimates of 3.5% and 3.6%).
Coupled with productivity gains, this should yield over 5% EPS CAGR from FY24 to FY27, slightly below the previous 6.5% CAGR, adds the analyst.
Overall, the analyst remains cautious about the stock, especially as PG's organic sales growth has decelerated over the past few quarters while trading at elevated multiples.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>)
Price Action: PG shares are down 0.93% at $167.31 at the last check Monday.
Image from Shutterstock
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</ul>

iShares Trust Dow Jones USnsumer Goods Sector Index Fund

Procter & Gamble Q1 Forecast Cut As Global Challenges Persist, Goldman Sachs Warns

Sam&#8217;s Club, the&nbsp;$86 billion&nbsp;division of&nbsp;Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), introduced a fresh workforce compensation plan, which boosted pay for close to 100,000 frontline associates and provided guidance for <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40900897/sams-club-reimagines-workforce-compensation-launches-new-plan-focused-on-providing-more-predictabl" rel="noreferrer noopener">longer-term financial futures</a>.
More engaged workers proved productive, offered better service, and were more likely to stay, especially as competition heated up in the retail space.
Sam&#8217;s Club&#8217;s new plan proposes increasing associate hourly wages by 3%—6% based on years of service. The plan sets predictable pay increase milestones.
Also Read: <a href="https://www.benzinga.com//node/40902098">Evaluating Walmart Against Peers In Consumer Staples Distribution &amp; Retail Industry</a>
With these new compensation investments, the average hourly rate for Sam&#8217;s Club associates will likely exceed $19, with the potential to earn thousands of dollars annually in bonuses. In the last five years alone, Sam&#8217;s Club raised the average hourly wage by close to 30%.
In July, Walmart Canada raised the <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39989702/walmart-canada-boosts-wages-for-40-000-workers-details" rel="noreferrer noopener">hourly wage for</a> close to 40,000 of its store associates amid easing inflation and rising unemployment in Canada. In June, the company announced bonuses for U.S. hourly store workers benefiting 700,000 front-line staff.
Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) is <a target="_blank" href="https://www.benzinga.com/news/24/09/40792054/amazon-targets-walmarts-grocery-market-with-expanded-prime-discounts" rel="noreferrer noopener">aggressively chasing Walmart&#8217;s</a> U.S. grocery market share by expanding Prime benefits, including discounts on over 3,000 grocery items. Walmart led the U.S. grocery market with a 23.6% market share in 2023, as per&nbsp;<a target="_blank" href="https://www.statista.com/statistics/1450393/leading-grocery-store-by-market-share-us/#:~:text=U.S.:%20leading%20grocers%202023%2C%20by%20market%20share&amp;text=In%202023%2C%20the%20leading%2011,at%20just%20over%2010%20percent." rel="noreferrer noopener">Statista</a>.
Walmart reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40391777/walmart-q2-earnings-e-commerce-and-advertising-businesses-fuel-revenue-and-profit-beat-hikes-annual" rel="noreferrer noopener">second-quarter sales</a> growth of 4.8% to&nbsp;$169.34 billion, beating the analyst consensus of&nbsp;$168.57 billion. At Sam&#8217;s Club, same-store sales rose&nbsp;5.2% year over year, excluding fuel.
Walmart stock is up 46% in the last 12 months. Investors can gain exposure to the stock through iShares Russell 1000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWD#NYSE">IWD</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>).
Price Action: WMT stock is down 2.53% at $78.52 at last check Tuesday.
Image via Shutterstock

AMZN

Walmart Division Sam's Club Raises Wages For Hourly Associates: A Strategic Move To Stay Ahead In Retail

Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) and Ross Stores, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NYSE">ROST</a>) should <a href="https://www.benzinga.com/markets/equities/24/08/40393307/why-is-target-corporation-stock-gaining-today">post better revenues</a> for the second quarter as consumers continue spending despite macro uncertainties, according to analysts from Tesley Advisory Group.
Analyst Joseph Feldman expects Target&#8217;s second-quarter revenue to improve 2% from a year ago to $25.3 billion when it reports earnings on Wednesday before the market opens. His forecast exceeds FactSet revenue consensus of $25.2 billion.
&#8220;Broadly, we believe consumers are showing resiliency as they continue to search for value and focus on essentials, while selectively spending on discretionary items and responding to innovation and newness,&#8221; Feldman wrote in a note on Target, commenting on shoppers in general.
Target continues to focus on its value-offering by cutting prices while offering private brands in new stores, he said.
Feldman maintains an Outperform rating and a $190 price target on Target shares.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40393687/retail-sales-soar-in-july-weekly-jobless-claims-undercut-expectations-traders-lea">Retail Sales Soar In July, Weekly Jobless Claims Undercut Expectations: Traders Lean Towards 25-Basis-Point Cut In September</a>
Analyst Dana Tesley forecasts a 6.9% jump in year-over-year second quarter revenue for Ross Stores to $5.28 billion when it releases its results on Thursday after the market closes. Her expectation exceeds revenue consensus of $5.24 billion.
&#8220;We continue to be encouraged by ROST's string of strong results across the past five quarters, with the business navigating macro challenges relatively well despite outsized pressure on some of its core consumers,&#8221; she wrote in a note.
&#8220;We are encouraged by management's efforts to improve the product mix and drive efficiencies across the business.&#8221;
She maintains a Market Perform and $160 price target on the stock.
Price Action: Target gained 1.67% to close at $144.03 on Friday, while exchange-traded funds that track the stock also advanced.
<ul>
<li>VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) gained 0.61</li>
<li>Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) picked up 0.27%</li>
<li>Simplify Next Intangible Value Index ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NXTV#BATS">NXTV</a>) edged up 0.15%</li>
<li>Federated Hermes U.S. Strategic Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDV#NYSE">FDV</a>) went up 0.41%</li>
<li>Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) gained 0.32%</li>
</ul>
Ross Stores slipped 0.27% to close at $147.40 on Friday, while ETFs that follow its shares had mixed results.
<ul>
<li>VictoryShares THB Mid Cap ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDCP#NASDAQ">MDCP</a>) rose 0.52%</li>
<li>BlackRock Future U.S. Themes ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BTHM#NYSE">BTHM</a>) slipped 0.03%</li>
<li>IShares U.S. Consumer Focused ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>) moved up 0.24%</li>
<li>LG QRAFT AI-Powered U.S. Large Cap Core ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQAI#NYSE">LQAI</a>) remained unchanged</li>
<li>Invesco S&amp;P 500 Equal Weight Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPD#NYSE">RSPD</a>) rose 0.29%</li>
</ul>
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Retail Sales

BlackRock ETF Trust BlackRock Future U.S. Themes ETF

BTHM

First Trust Strategic Value Index Fund for Credit Suisse US Value Index

IEDI

Exchange Listed Funds Trust LG QRAFT AI-Powered U.S. Large Cap Core ETF

LQAI

MDCP

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NXTV

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Merrill Lynch Retail HOLDRS Trust due 12/31/41

Target, Ross Stores Expected To Post Higher Revenues As Consumers Stay Resilient: Analysts

Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) shares are trading higher on Thursday after the company announced&nbsp;strong&nbsp;second-quarter 2025 results&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40390393/walmart-reports-strong-revenue-growth-of-4-8-with-operating-income-growing-faster-at-8-5-adjusted-" rel="noreferrer noopener">and raised full-year&nbsp;guidance</a>.
The retailer reported adjusted EPS&nbsp;of&nbsp;$0.67&nbsp;(+9.8%&nbsp;Y/Y),&nbsp;beating the consensus of&nbsp;$0.64 and sales of&nbsp;$169.34 billion, surpassing the <a target="_blank" href="https://www.benzinga.com//node/40391777" rel="noreferrer noopener">consensus of&nbsp;$168.57 billion</a>.
Walmart expects&nbsp;third-quarter&nbsp;adjusted EPS of&nbsp;$0.51 to $0.52&nbsp;versus a consensus of&nbsp;$0.55, and its net sales to grow 3.25% &#8211; 4.25% in CC.
JP Morgan analyst Christopher Horvers has an <a href="https://www.benzinga.com/quote/wmt/analyst-ratings">Overweight rating on WMT.</a> The analyst anticipates a positive stock price reaction today, given concerns about the consumer market and fears of a slowdown at the end of the second quarter, coupled with strong gross margins exceeding Street expectations in both the U.S. and international markets.  
This assumes management adequately addresses the third-quarter timing shift mentioned, writes the analyst. Horvers adds that the absence of an upgrade to implied fourth-quarter estimates likely reflects caution over consumer trends and uncertainties in the second half due to known headwinds.
The analyst says that the third-quarter guidance accounts for the timing of festive events in the international segment and planned expenses. This includes the impact of FK&#8217;s Big Billion Days events, which frequently shift between the third and fourth quarters (as seen in 2023).
Investors can gain exposure to the stock via&nbsp;Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) and&nbsp;SPDR Select Sector Fund – Consumer Staples (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Price Action: WMT shares are up 6.55% at $73.15 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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Walmart's Q4 Outlook Clouded by Consumer Spending Concerns: JP Morgan Analyst

Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) Walmart Canada disclosed it raised the hourly <a target="_blank" href="https://www.walmartcanada.ca/news/2024/07/25/walmart-canada-raising-store-associate-wages--investing-in-techn" rel="noreferrer noopener">wage </a>earlier this month for approximately 40,000 store associates to remain competitive in providing attractive compensation in its operating markets.
The wage hike is part of Walmart Canada&#8217;s broader strategy to develop talent, modernize work processes, and strengthen its workplace culture.
In addition to wage increases, Walmart Canada has invested in digital handheld devices for store associates. These devices enhance customer service by allowing associates to quickly locate items and communicate more efficiently.
Walmart Canada&#8217;s compensation package includes an annual incentive bonus, enhanced health and dental benefits, mental health care, and gender affirmation care.
Associates also have access to 24/7 virtual care and employee assistance programs through TELUS Health, as well as a Walmart discount card for 10% savings on groceries and general merchandise.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39729844/how-walmart-is-planning-to-boost-perishables-distribution-read-to-know" rel="noreferrer noopener">How Walmart Is Planning To Boost Perishables Distribution? Read To Know</a>
Through the Live Better U (LBU) educational program, Walmart covers 100% of tuition, books, and course fees for associates and has already benefitted over 3,000 associates.
&#8220;We&#8217;re on a journey of developing our talent, simplifying and modernizing how we work, investing in our teams, and strengthening our culture,&#8221;&nbsp;said Chief People Officer, Walmart Canada, AnnMarie Mercer.
The development follows similar investments made in recent months for U.S. store workers, aimed at retaining more employees, reported Reuters.
In February, Walmart increased the average annual salary and<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36837656/walmarts-store-managers-stand-to-gain-20k-in-stock-annually-exceeding-525k-in-total-compensation" rel="noreferrer noopener"> bonus for U.S. store managers</a>.
Additionally, in June, the company announced bonuses for U.S. hourly store workers, including those in pharmacies and Vision Centers, benefiting 700,000 front-line staff.
Related: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39188408/walmart-sweetens-the-deal-for-hourly-employees-with-annual-bonuses-and-skill-upgrades-details" rel="noreferrer noopener">Walmart Sweetens The Deal For Hourly Employees with Annual Bonuses And Skill Upgrades: Details</a>
The recent move comes amid easing inflation and rising unemployment in Canada. Walmart Canada operates over 400 stores nationwide, employing more than 100,000 associates.
Walmart stock has gained more than 31% in the last 12 months.&nbsp;Investors can&nbsp;gain access to&nbsp;the stock via&nbsp;the Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) and&nbsp;Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>).
Price Action: WMT shares are trading lower by 0.21% at $69.87 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image from Shutterstock
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</ul>

Media

Walmart Canada Boosts Wages for 40,000 Workers: Details

Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) is likely to invest $200 million in self-driving forklifts to automate more of its warehouse operations.
The world&#8217;s largest retailer plans to buy potentially hundreds of autonomous forklifts from Fox Robotics, with whom it has already invested $25 million, reported Reuters citing sources.
This move is part of Walmart&#8217;s broader strategy to increase automation and compete with Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).
Walmart&#8217;s plan includes exclusive deals with robotics vendors like Fox Robotics and Symbotic Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SYM#NASDAQ">SYM</a>). These agreements will also restrict Walmart&#8217;s competitors from using the technology.
Walmart spokesperson Camille Dunn confirmed that the company is piloting the technology with 19 FoxBots in four facilities.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/07/39729844/how-walmart-is-planning-to-boost-perishables-distribution-read-to-know">How Walmart Is Planning To Boost Perishables Distribution? Read To Know</a>
In recent years, Walmart has focused on robotics to manage costs and keep product prices low. Analysts from Jefferies estimate that Walmart could add $20 billion to its profit before interest and taxes by fiscal 2029 due to automation and AI efforts.
Walmart&#8217;s deal with Symbotic, announced in 2022, involves implementing automation in 42 distribution centers, where Walmart owns more than 13% of Symbotic stock.
FoxBots, tested for over a year, can unload pallets and integrate them into Symbotic&#8217;s automated system. Fox Robotics claims a single operator can manage up to six autonomous forklifts, reducing labor costs by 40%. 
Walmart stock has gained more than 29% in the last 12 months. Investors can gain access to the stock via the Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>).
Price Action: WMT shares are trading lower by 0.91% at $69.38 at last check Friday.
Read Next: 
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<li><a href="https://www.benzinga.com/news/24/07/39803132/amazon-to-surpass-walmart-this-year-as-largest-us-retailer-analyst">Amazon To Surpass Walmart This Year As Largest US Retailer: Analyst</a></li>
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Walmart Considers $200M Bet On Self-Driving Forklifts To Boost Automation

Philip Morris International Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PM#NYSE">PM</a>) has announced a $600 million investment through one of its U.S. affiliates to establish a <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39789795/philip-morris-international-u-s-affiliate-to-create-500-jobs-investing-600-million-in-aurora-colo-" rel="noreferrer noopener">manufacturing facility in Aurora, Colorado</a>.
The new plant, expected to create 500 direct jobs and generate $550 million in annual economic impact, will also add 1,000 indirect jobs as it produces Swedish Match ZYN nicotine pouches to meet the rising demand for smoke-free products among legal-age consumers.
PMI aims to shift adult smokers in the U.S. away from traditional cigarettes by enhancing its U.S. manufacturing capabilities.
PMI Americas President and U.S. CEO Stacey Kennedy said, &#8220;We believe Colorado is likeminded in its commitment to innovation, economic opportunity and public health, and we&#8217;re eager to work with the state and its talented workforce as we expand our U.S. manufacturing presence.&#8221;
The new facility is scheduled to break ground later this year, with operations starting by the end of 2025 and full production in 2026.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39377842/whats-happening-with-tobacco-major-philip-morris-shares-on-tuesday" rel="noreferrer noopener">Swedish Match North America Subpoenaed Over DC Flavored Sales</a>
The construction phase will create nearly 5,000 jobs, contributig nearly $1 billion to the economy. The facility will offer various career opportunities, including engineering, production, technical, and quality control positions, with an average annual salary of approximately $90,000.
PMI&#8217;s Swedish Match North America division is also ramping up production at its Owensboro, Kentucky facility.
PMI entered the U.S. market after acquiring Swedish Match in late 2022. ZYN pouches offer a smoke-free alternative for legal-age nicotine users and have been available in the U.S. for over a decade.
PMI said its U.S. affiliates follow strict marketing practices, ensuring access is limited to adults 21 and older. They do not use social media influencers under 35 and employ age-verification systems like &#8220;Double Verify&#8221; to restrict digital advertising to the legal-age audience.
Philip Morris stock has gained more than 7% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>).
Price Action: PM shares traded higher by 0.80% at $105.92 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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<li><a href="https://www.benzinga.com/markets/equities/24/06/39165115/philip-morris-international-raises-2024-earnings-outlook-expects-growth-despite-currency-impact" target="_blank" rel="noreferrer noopener">Philip Morris International Raises 2024 Earnings Outlook, Expects Growth Despite Currency Impact</a></li>
</ul>

Philip Morris Expands US Operations With $600M Colorado Plant

June&#8217;s U.S. retail sales report indicates that <a href="https://www.benzinga.com/topic/retail-sales">increasingly careful consumers </a>are still opening their wallets, despite a stagnant reading on Tuesday, economists say.
U.S. retail sales remained<a href="https://www.benzinga.com/markets/bonds/24/07/39792320/june-retail-sales-stagnate-traders-fully-price-in-september-interest-rate-cut"> flat in June</a>, falling from an upwardly revised 0.3% growth in May to zero growth and matching the forecasted flat reading, according to preliminary estimates<a href="https://www.census.gov/retail/sales.html"> issued</a> on Tuesday.
&#8220;A more discerning consumer continues to spend,&#8221; Quincy Krosby, chief global strategist for LPL Financial, said on Tuesday.
&#8220;This morning&#8217;s retail report &#8212; coupled with positive revisions &#8212; suggests that the all-important U.S. consumer, while increasingly discerning regarding purchases, continues to spend at a resilient pace.&#8221;
She also noted that Treasury yields inched higher on the favorable print, but equity futures remain positive.
&#8220;This report doesn&#8217;t negate expectations that the Fed will cut rates at its September 18 meeting, unless of course inflation-related data releases indicate an uptick in prices,&#8221; she said.
&#8220;Today&#8217;s report should be positive for markets as investors prefer the launch of a Fed easing cycle to begin with a still solid economic backdrop,&#8221; Krosby added.
Also Read: <a href="https://www.benzinga.com/news/24/06/39381240/us-stocks-mixed-retail-sales-increase-0-1-in-may">US Stocks Mixed; Retail Sales Increase 0.1% In May</a>
<h3 class="wp-block-heading">June Retail Sales Report: Key Highlights</h3>
<ul>
<li>On a year-over-year basis, retail sales rose by 2.3% in June, slowing from an upwardly revised 2.6% in May.</li>
<li>Excluding motor vehicle and parts, retail sales increased by 0.4% month-over-month, up from 0.1% in May and topping the expected 0.1%, according to TradingEconomics data.</li>
<li>Excluding gasoline, motor vehicle and parts, retail sales rose 0.8% month-over-month in June, beating expectations of 0.2% growth and advancing from an upwardly revised 0.3% gain in May.</li>
<li>Among different spending categories, the largest monthly increases were seen in nonstore retailers, with a 1.9% rise, followed by building material, garden equipment and supplies dealers, up 1.4%.</li>
<li>The largest monthly drops were seen in gasoline stations, down 3%, and motor vehicle and parts dealers, down 2%.</li>
</ul>
&#8220;Consumers are pulling back on some items but they still show signs of resilience,&#8221; Jeffrey Roach, chief economist for LPL Financial, said on Tuesday.
&#8220;Investors will get a better picture on the consumer in the upcoming personal income and spending release later this month. So far, those consumers who experienced strong real income growth continue to support the economy with their insatiable appetite to spend,&#8221; Roach added.
Price Action: Major retailers made modest gains on Tuesday morning. Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) edged up 0.42% to $69.92, while Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) gained 0.79% to $194.24 and The Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) was up 1.81% to $365.03.
Exchange-traded funds that track Walmart, the world&#8217;s largest retailer, were up following the retail sales report. The Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) gained 0.45% as the Vanguard Consumer Staples Index Fund ETF Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) gained 0.83%.
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Photo: Shutterstock

Econ #s

Flat Retail Sales Report Shows 'A More Discerning Consumer' Keeps Spending, Economists Say

Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) should beat last year&#8217;s<a href="https://www.benzinga.com/news/24/07/39770529/amazon-gears-up-for-prime-day-2024-with-2t-market-cap"> Prime Day results</a> due to &#8220;early access deals,&#8221; analysts say.
Bank of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) expects sales for this year&#8217;s 48-hour sales spree to jump 7% to $13 billion, beating the 6.1% sales leap to $12.7 billion posted during last year&#8217;s Prime Day, CNBC report <a href="https://www.cnbc.com/2023/07/13/amazon-prime-day-more-than-375-million-items-sold.html">citing</a> Adobe Analytics.
&#8220;In our view, this year&#8217;s press release was more focused on early access deals and discounted services than last year, which could pull forward some sales out of Prime Day(s),&#8221; the bank said in a note on Monday
Amazon will offer discounts on hundreds of items over the two days to consumers with Amazon Prime memberships, including 57% off an Amazon Fire HD tablet computer, 28% off a Kenmore electric oven and 37% off a 55-inch Amazon Fire TV, according to its website.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39695135/analysts-see-upside-ahead-for-amazon-stock-as-prime-day-approaches">Analysts See Upside Ahead For Amazon Stock As Prime Day Approaches</a>
Bank of America noted that Amazon isn&#8217;t the only retailer holding July sales events. Retail giant Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) just held a deal event that ended July 11. Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) held a &#8220;Circle Week&#8221; promotion that closed on July 13. TikTok Shop is holding a &#8220;Deal for You Days&#8221; that began on July 9.
Bank of America maintains a Buy rating and price target of $194.49 for Amazon.
Price Action: Amazon edged up 0.28% to $195.04 by late-morning trading on Monday. Walmart edged up 0.84% to $69.82. 
Exchange-traded funds that hold both Amazon and Walmart shares, however, trended downward.
Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) slipped 0.01%, while Fidelity MSCI Consumer Staples Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSTA#NYSE">FSTA</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) both dipped 0.08%. ProShares Ultra Consumer Staples (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SZK#NYSE">SZK</a>) declined 0.70% and Van Eck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) slipped 0.19%.
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Walmart (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) is planning to take steps to enhance <a target="_blank" href="https://corporate.walmart.com/news/2024/07/10/walmarts-grocery-network-transformation-the-next-steps-on-our-supply-chain-modernization-journey" rel="noreferrer noopener">customer </a>satisfaction by expanding its grocery network with advanced technology and focusing on creating a more connected supply chain to ensure faster product availability.
The retail giant is constructing five new perishable distribution centers (DCs) with high-tech capabilities. The first, operational since 2021, is located in Shafter, California.
Additional centers in Lancaster, Texas; Wellford, South Carolina; Belvidere, Illinois; and Pilesgrove, New Jersey, will collectively add around 2,000 jobs to local communities.
These new distribution centers (DCs) will handle temperature-sensitive items like milk, meat, vegetables, and fruits that can spoil quickly, reported Reuters.
Also, Walmart is expanding four traditional perishable DCs, each gaining over 500,000 square feet of automation to boost fresh product capacity.
These expansions are taking place in Mankato, Minnesota; Mebane, North Carolina; Garrett, Indiana; and Shelbyville, Tennessee.
Walmart&#8217;s Winter Haven, Florida perishable DC is undergoing upgrades to integrate the latest technology. This retrofit aims to test the feasibility of updating existing grocery buildings with automation, similar to the company&#8217;s ambient distribution center in Brooksville, Florida.
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The introduction of state-of-the-art technology in facilities aims to increase speed and capacity, enhancing reliability for customers.
High-tech DCs can store double the cases and process more than twice the volume of traditional perishable DCs, significantly improving efficiency.
This investment in technology supports Walmart&#8217;s goal of providing quick delivery and pickup services for groceries, utilizing its stores to fulfill online orders, reported Reuters.
Walmart, the largest grocery retailer in the U.S., generates<a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38869341/walmars-q1-earnings-revenue-and-eps-beat-more-members-and-high-income-households-raised-outlook" rel="noreferrer noopener"> nearly $650 billion in annual sales</a>, with groceries accounting for 60% of its revenue, per the report.
By the end of its fiscal year 2026, Walmart aims for about 65% of its stores to be serviced by automation, further streamlining its supply chain and improving efficiency.
Walmart stock has gained more than 36% in the last 12 months.&nbsp;Investors can&nbsp;gain access to&nbsp;the stock via&nbsp;the Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>).
Price Action: WMT shares are trading lower by 0.17% at $70.29 at premarket at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image from Shutterstock
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