Prime Highlights:
- Retailers like Abercrombie & Fitch, Victoria’s Secret, and American Eagleare seeing strong gains, with some hitting new highs this month.
- Financial stocks, including Bank of America, Citigroup, and JPMorgan, have reached record highs, driving sector-wide momentum.
Key Facts:
- The State Street SPDR S&P Retail ETF (XRT)rose 8% over the past month, reflecting renewed investor interest in retail.
- In December, Financialsare the top-performing sector (+4.2%), followed by Materials (+3.1%) and Consumer Discretionary (+3%), while Utilities and Real Estate have lagged.
Background:
Retail and financial stocks are rising as the holiday shopping season picks up, with several companies reaching new highs and showing strong month-to-month growth.
The State Street SPDR S&P Retail ETF (XRT) has gained 8% over the past month, showing renewed investor interest in retail. While the ETF remains 3% below its mid-September peak, individual retailers are seeing even more pronounced gains.
Abercrombie & Fitch has stood out, rising 77% in the past month, though its shares are still 25% below the January peak. Victoria’s Secret gained nearly 50% during the same period and reached new highs last week. American Eagle also climbed 43% in a month, hitting recent highs. Kohl’s and Bath & Body Works rose 36% and 30% respectively, even though they are still below their previous top prices. Amazon saw smaller growth, up 5% in a month but down 10% from early November, while Dick’s Sporting Goods showed little change.
Macy’s mall-related stocks have also benefited, with Macerich up 13%, Simon Property Group rising 2.5%, and Tanger gaining around 2% over the past month. Luxury and fashion names continue to shine, with Tapestry hitting a new all-time high, marking a milestone since the company was known as Coach in 2000.
Financial stocks are leading the broader market this December. Bank of America, Citigroup, JPMorgan, Northern Trust, and Wells Fargo all hit record highs this month, with gains ranging from 8.5% to 15% in December alone. Regional banks like KeyCorp, M&T Bank, PNC Financial Services, and U.S. Bancorp have reached multi-year highs, showing strength across the sector.
This month, Financials are the top-performing sector, up 4.2%, followed by Materials (+3.1%) and Consumer Discretionary (+3%). On the other hand, Consumer Staples and Real Estate have fallen, down 2% and nearly 3%, while Utilities are the weakest, down 5.5% in December.
With the shopping season in full swing, investors are closely watching retail and financial stocks as the market stays positive heading into year-end.
