Internet retail stocks slumped to begin the new year with consumer discretionary spending worries and valuation concerns still very much in play. The decline for the sector came ahead of a wave of economic releases this week, including the December jobs report on Friday. Traders are also watching upcoming speeches this week by Fed presidents for more hints on the pace and duration of interest rate hikes.
ThredUp ( TDUP ) peeled off 6.87% and Etsy ( NASDAQ: ETSY ) was on the biggest decliners in the S&P 500 Index with a 6.22% drop. Other online sellers showing a loss included Chewy ( CHWY ) -5.29% , Farfecth ( FTCH ) -5.25% , Overstock.com ( OSTK ) -4.55% , MercadoLibre ( MELI ) -3.15% , and Wayfair ( W ) -2.75% . Amazon ( AMZN ) was an exception with a 1.15% gain as several analysts included the stock on their top picks for 2023 lists.
What to watch: The first update on holiday sales for the retail sector and e-commerce companies could start arriving this week. Some analysts see more risk for downward surprises due to the persistent inflation pressures on consumers.
Read the broad market update for the January 3 trading action.
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Etsy, ThredUp and Chewy headline down day for Internet retail stocks