TGT - Retail stocks get a boost from solid May print West Coast port labor deal
2023-06-15 10:03:18 ET
Retail sales were steady in May with a 0.3% gain from April and a 1.6% rise from the level of a year ago. Retail sales were up 3.9% year-over-year after factoring out the impact of gas and auto.
The categories that showed the biggest year-over-year increases were health & personal stores (+7.8%), food services (+8.0%), and online retail (+6.5%). The furniture/home furnishings (-6.4%) and electronics/appliances (-5.0%) categories lagged during the month in a trend to watch for companies such as La-Z-Boy ( LZB ), Ethan Allen Interiors ( ETD ), Sleep Number ( SNBR ), Willians Sonoma ( WSM ), Best Buy ( BBY ), and Whirlpool ( WHR ).
Walmart ( WMT ) +0.8% , Target ( TGT ) +2.0% , Home Depot ( HD ) +0.6% , and Procter & Gamble ( PG ) all showed +0.70% all showed modest gains following the retail sales print. The push higher also followed the hawkish tone from the Federal Reserve on Wednesday on interest rate policy.
The retail sector also received some positive news this week when a tentative agreement was reached between the International Longshore and Warehouse Union and the Pacific Maritime Association. The parties have been in negotiations since the labor contract initially expired in July 2022. Weighing in on the development, the National Retail Federation said the new agreement provides stability to the supply chain and assurance to the millions of businesses and employees who rely on smooth and efficient operations from the West Coast ports.
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Retail stocks get a boost from solid May print, West Coast port labor deal