BIRD - Consumer stocks rip big gains after jobs report surprises

2023-06-02 14:50:18 ET

The consumer sector piled up big gains after investors digested the May jobs report. The mixed labor market data strengthened bets for a pause in rate hikes at the Federal Reserve's meeting later this month. Investors were also reacting to the  debt ceiling bill crossing the finish line, with U.S. President Biden expected to sign it into law shortly.

The biggest consumer stock gainers from the S&P 500 Index included Caesars Entertainment ( NASDAQ: CZR ) +7.1% , Las Vegas Sands ( LVS ) +7.0% , Tapestry ( TPR ) +6.5% , Ralph Lauren ( RL ) +5.9% , Etsy ( ETSY ) +4.8% , and Expedia ( EXPE ) +4.7% .

The jobs report was strong enough to push Walmart ( WMT ) up 1.8% and Target ( TGT ) 1.6% higher, with the read-through being that consumer spending trends could hold up. Investors also bid up Dollar Tree ( DLTR ) +2.4% and Dollar General ( DG ) +2.0% as their recent selloffs petered out.

Some of the biggest sector gainers of all were from the apparel store sector, with the Lululemon ( LULU ) +12.5% blowout earnings report also a factor. Allbirds ( BIRD ) +11.3% , Childrens' Place ( PLCE ) +9.7% , and Gap ( GPS ) +6.6% were all notably higher.

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