SPDR Select Sector Fund - Consumer Discretionary (ARCA: XLY)

SPDR Select Sector Fund - Consumer Discretionary (ARCA:XLY), Quote.Headers.trade-ideas

SPDR Select Sector Fund - Consumer Discretionary

Consumer Cyclical

Technology

Healthcare

Financial Services

Other

Communication Services

Real Estate

Energy

Industrials

Consumer Defensive

Utilities

Basic Materials

The fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: retail; hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services. It is non-diversified.

Amazon.Com Inc

Tesla, Inc.

Home Depot Inc/The

Mcdonald'S Corp

Lowe'S Cos.Inc.

Tjx Cos., Inc.

Booking Holdings, Inc.

Nike Inc

Starbucks Corp

Chipotle Mexican Grill Inc. Class A

The Consumer Discretionary Select Sector SPDR Fund

xr:d:DAE9HpS4rJc:9334,j:46081936958,t:23042814

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AAPL

AMZN

CLIX

FDIS

GOOG

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ONLN

Select Sector SPDR-Consumer Discretionary

Amazon raises hourly pay by $1.50 for front-line employees, bringing average total compensation to $29/hr. Total investment of $2.2B for 800K employees.

Amazon Joins UPS In Raising Hourly Pay As Worker Compensation Trends Upward

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Launched on 10/21/2013, the Fidelity MSCI Consumer Discretionary Index ETF (ARCA:FDIS) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Discretionary - Broad segment of the equity market.

Should You Invest in the Fidelity MSCI Consumer Discretionary Index ETF?

What Happened?

Analyst Color

Retail Sales

Amazon&#39;s success not based on e-commerce, but high-margin services like advertising and cloud; e-commerce only accounts for 58% of revenue.

Amazon E-Commerce Is A &#39;Loss-Leader&#39; … Its Real Money Is In &#39;Services,&#39; Says Analyst

INVESCO CONS DISC S&P US SECTOR  ETF

Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) has raised the <a href="https://www.benzinga.com/markets/equities/24/09/40912814/amazon-told-its-staff-they-must-come-to-office-five-days-a-week-but-its-primary-healthcare-subsi">pay for hourly workers</a> at its U.S. fulfillment centers and transportation operations, the retail giant announced on Wednesday.
&#8220;Earlier today,&nbsp;I visited one of our sites near Salt Lake City to share some news with our teammates there—that we're making a significant new investment in pay and benefits for the hourly front-line employees across our fulfillment and transportation network,&#8221; Udit Madan, vice president of Amazon Worldwide Operations, wrote in the company&#8217;s newsletter.
He said Amazon&#8217;s front-line team will receive an hourly pay raise of $1.50 starting this month to bring the average base wage to $22 per hour. This will bring average total compensation, which includes benefits, to $29 per hour, he said.
&#8220;This is an increase of $3,000 a year on average for full-time employees who work a 40-hour week,&#8221; he wrote.
Read Also: <a href="https://www.benzinga.com/news/large-cap/24/09/40904271/whats-going-on-with-amazon-stock">What&#8217;s Going On With Amazon Stock?</a>
&#8220;And as one of the largest private employers in the country (we now have more than 800,000 people in these roles across the U.S.), this pay increase equals a total investment of more than $2.2 billion in our team.&#8221;
Amazon&#8217;s benefits include pre-paid college tuition, flexible working hours, a Prime membership, health insurance from the first day on the job and dental coverage.
&#8220;As I told the team this morning, this is just one way to say thank you for all they do,&#8221; Madan wrote.
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) and Google, which is owned by Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) offer <a href="https://www.benzinga.com/news/23/06/32679188/silicon-valleys-salary-showdown-unveiling-how-much-top-talent-at-apple-microsoft-and-google-get-paid-1">six-figure salaries</a> for managers and engineers.
Just over a year ago, the United Parcel Service, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>) and the Teamsters Union ratified a <a href="https://www.benzinga.com/news/large-cap/23/08/33995076/ups-and-teamsters-seal-the-deal-ensures-170-000-per-year-for-drivers-the-next-5-years">five-year contract</a> that ensures $170,000 per year for drivers over the next five years.
Price Action: Amazon gained 0.1% to $187.11 at the time of publication Wednesday.
Exchange-traded funds that hold the stock also trended upward.
<ul>
<li>ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>) gained 1.32%.</li>
<li>Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>) rose 0.72%.</li>
<li>Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) went up 0.81%.</li>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) gained 0.67%.</li>
<li>ProShares Long Online/Short Stores ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLIX#NYSE">CLIX</a>) ticked up 0.68%.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/09/40887347/amazon-to-cut-management-layers-end-work-from-home">Amazon To Cut Management Layers, End Work From Home</a></li>
</ul>
Photo: Shutterstock

Launched on 10/21/2013, the Fidelity MSCI Consumer Discretionary Index ETF (ARCA:FDIS) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Discretionary - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
<h2>Index Details</h2>
The fund is sponsored by Fidelity. It has amassed assets over $1.70 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. FDIS seeks to match the performance of the MSCI USA IMI Consumer Discretionary Index before fees and expenses.
The MSCI USA IMI Consumer Discretionary Index represents the performance of the consumer discretionary sector in the U.S. equity market.
<h2>Costs</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 0.58%.
<h2>Sector Exposure and Top Holdings</h2>
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund&#39;s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 100% of the portfolio.
Looking at individual holdings, Amazon.com Inc accounts for about 20.67% of total assets, followed by Tesla Inc and Home Depot Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hd#NYSE">HD</a>).
The top 10 holdings account for about 55.60% of total assets under management.
<h2>Performance and Risk</h2>
The ETF return is roughly 8.30% so far this year and it&#39;s up approximately 15.69% in the last one year (as of 09/17/2024). In that past 52-week period, it has traded between $64.24 and $86.11.
The ETF has a beta of 1.28 and standard deviation of 25.14% for the trailing three-year period, making it a medium risk choice in the space. With about 275 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Fidelity MSCI Consumer Discretionary Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FDIS is a sufficient option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Discretionary ETF (ARCA:VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (ARCA:XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.67 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $18.49 billion. VCR has an expense ratio of 0.10% and XLY charges 0.09%.
<a href="https://www.zacks.com/stock/news/2336918/should-you-invest-in-the-fidelity-msci-consumer-discretionary-index-etf-fdis?cid=CS-BENZ-FT-sector_etf-2336918">To read this article on Zacks.com click here.</a>

Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) may be regarded by consumers primarily as <a href="https://www.benzinga.com/news/24/09/40751108/whats-going-on-with-amazon-stock-friday">an e-commerce company</a>, given its blue delivery trucks are constantly dropping off packages at people&#8217;s doorsteps, but an analyst begs to differ.
&#8220;Our view is that eCommerce does NOT drive AMZN&#8217;s share price,&#8221; Needham analyst Laura Martin wrote in a note Thursday.
 &#8220;We believe AMZN is a Services company (ie, Advertising, Cloud, Prime Video, etc), NOT a products company, and eCommerce is all about products. Every quarter, we calculate a sum-of-the-parts valuation, and in most quarters we conclude that investors are paying almost nothing for AMZN&#8217;s eCommerce.&#8221;
She noted Amazon&#8217;s net revenue for this year&#8217;s second quarter grew 15% year-over-year to $86.4 billion, accounting for 58% of the company&#8217;s revenue of $148 billion in a three-month period and growing four timers faster than product sales revenue.
She said that quarterly product sales have stagnated at around $61 billion for every quarter since the first quarter of 2021, excluding the fourth quarter of every year.
Read Also: <a href="https://www.benzinga.com/real-estate/24/09/40814473/seller-of-79m-mansion-to-jeff-bezos-says-he-was-deceived-files-lawsuit-over-lost-millions-against-re">Seller Of $79M Mansion To Jeff Bezos Says He Was Deceived, Files Lawsuit Over Lost Millions Against Real Estate Firm That Brokered The Deal</a>
&#8220;AMZN&#8217;s services revs have been higher than its product sales for the past 11 quarters, and the gap is widening,&#8221; Martin wrote.
&#8220;We believe that eCommerce is where AMZN came from, but high margin businesses such as Advertising, Cloud, GenAI and other Services are where AMZN is going,&#8221; she added.
Martin pointed out that Amazon&#8217;s eCommerce business is very adaptable to meeting customer needs and is committed to constantly shortening delivery speeds with its &#8220;enormous&#8221; logistics network, but the company realizes significant costs in maintaining same-day delivery.
She attributed the higher costs to fewer items getting sent in a single box, running empty delivery trucks and requiring more gas and trips to pull off the same-day delivery.
&#8220;We believe the financials support the view that AMZN uses its eCommerce business as a loss-leader,&#8221; she said.
&#8220;This notion was supported by several experts who mentioned that AMZN&#8217;s retail strategy has historically centered around maintaining low margins for both 1P and 3P eCommerce business, and then adding higher-margin revenue streams such as Prime subscriptions and advertising, in order to improve profit margins.&#8221;
AMZN Price Action: Amazon gained 0.18% to $184.86 Thursday at publication.
Exchange traded funds that hold the stock mostly trended upwards on Thursday.
<ul>
<li>ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>) rose 0.12%</li>
<li>Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>) went up 0.16%</li>
<li>Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) gained 0.28%</li>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) edged up 0.24%</li>
<li>ProShares Long Online/Short Stores ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLIX#NYSE">CLIX</a>) slipped 0.38%</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/24/01/36488214/jeff-bezos-encouraged-his-brother-and-sister-to-invest-10-000-in-amazon-their-stake-grew-10-249-900">Jeff Bezos Encouraged His Brother And Sister To Invest $10,000 In Amazon — Their Stake Grew 10,249,900% And Now Potentially Is Worth Over $1 Billion</a></li>
</ul>
Photo: Shutterstock

Amazon E-Commerce Is A 'Loss-Leader' … Its Real Money Is In 'Services,' Says Analyst

Risk aversion is shaping another tough day for Wall Street, with stocks trading in the red as investors await the presidential debate between Vice President Kamala Harris and former President Donald Trump,<a href="https://www.benzinga.com/general/politics/24/09/40797797/trump-vs-harris-debate-do-voters-want-to-hear-more-about-economy-healthcare-or-bitcoin"> scheduled at 9 p.m. ET. </a>
Energy and financial sectors are witnessing deeper losses, sharply underperforming the rest of the market. 
In the latest monthly report, OPEC revised its global oil demand growth forecasts downward, now expecting 2024 oil demand to increase by 2.03 million barrels per day (bpd), down from the previous estimate of 2.1 million bpd. For 2025, OPEC has trimmed global demand growth forecast to 1.74 million bpd, compared to the earlier projection of 1.78 million bpd.
On the regulatory front, Federal Reserve Board Vice Chair for Supervision Michael Barr announced changes to the BASEL III and GSIB (Global Systemically Important Banks) surcharge proposals, which will now increase capital requirements for the largest banks by 9%, down from the original plan of 19%. Barr also clarified that banks with assets under $250 billion would largely be exempt from these heightened requirements.
Despite this capital relief, financial stocks sank across the board. The financial sector gauge fell 2%, with JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) dropping 7%. The SPDR Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) declined 2.6%, reflecting ongoing pressure even on the regional bank industry which is largely exempted from the regulation.
Elsewhere, Treasuries continued to rally. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rose 0.6%, hitting its highest levels since late July 2023. 
The Japanese yen gained 0.5%, while both gold and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) traded broadly flat, reflecting a mixed sentiment in alternative assets.
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,667.20</td>
<td>0.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,458.25</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,509.61</td>
<td>-0.8%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,081.31</td>
<td>-1.0%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:50 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091024&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.2% lower to $545.43.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.6% to $406.46.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) inched 0.1% higher to $454.91.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 1% to $206.36.</li>
<li>The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) outperformed, up 0.8%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and the Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) were the laggards, down 2.1% and 1.9%, respectively.</li>
</ul>
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
<ul>
<li>Worst-performing energy stocks were Diamondback Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NYSE">FANG</a>), APA Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APA#NYSE">APA</a>) and Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>), down 5.1%, 5% and 3.4%, respectively.</li>
<li>Hewlett Packard Enterprise Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) fell over 7% as the company announced it has commenced a public offering of $1.35 billion (27 million shares) of Series C mandatory convertible preferred stock.</li>
<li>Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) rallied 12% on the back of stronger-than-expected quarterly results. </li>
<li>Other stocks reacting to earnings were Rubrik Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBRK#NYSE">RBRK</a>) down 5.8% and Academy Sports and Outdoors Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASO#NASDAQ">ASO</a>) up 5.68%.</li>
<li>GameStop Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) will report earnings after the close.</li>
</ul>
Read Also:
<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/09/40799429/s-p-500-off-to-a-rough-start-in-september-with-historical-trends-suggesting-more-troub">Stocks Had Worst Start To September Nearly Ever &#8211; Here&#8217;s Why</a></li>
</ul>
Photo: Shutterstock

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Commodities

Economics

$BTC

SPDR Dow Jones Industrial Average ETF Trust

FANG

ORCL

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iShares Trust Barclays 20+ Year Treasury Bond Fund

XLRE

Wall Street Falls Ahead Of Trump-Harris Debate, Bank Stocks Tumble, Oil Plummets To $65 On Weaker Demand Outlook: What's Driving Markets Tuesday?

<a href="https://www.benzinga.com/news/24/09/40766744/elon-musk-says-tesla-will-open-a-lot-more-superchargers-asks-ev-enthusiasts-for-input-on-where-to-in">The UK parliament </a>wants to summon Elon Musk to appear before a committee and provide evidence about how his social media platform, X, is run. 
The plans to summon Musk, who <a href="https://www.benzinga.com/m-a/22/10/29458281/elon-musk-takes-over-twitter-whos-in-charge-whos-gone-and-what-happens-to-the-stock">acquired X (formerly Twitter)</a> in 2022, were drawn up by Labour politician Dawn Butler, who is seeking to head the House of Commons&#8217; Science, Innovation and Technology Select Committee.
Musk is "someone we'd like to invite" as a witness," Butler <a href="https://www.ft.com/content/c4849a3a-cdaa-487c-8845-b54e50356add">told</a> the Financial Times. &#8220;It is vital for the committee to formally examine the use of algorithms in pushing hateful material — and the moderation of such content — on X and other social media platforms.&#8221;
Labour MP Chi Onwurah, Butler&#8217;s rival for the chair position, is in favor of an inquiry into using algorithms by social media companies, including how they result in misinformation and profits.
Read Also: <a href="https://www.benzinga.com/news/24/09/40700524/mark-cuban-tells-elon-musk-delete-your-account-after-tech-billionaire-calls-tucker-carlsons-latest-e">Mark Cuban Tells Elon Musk &#8216;Delete Your Account&#8217; After Tech Billionaire Calls Tucker Carlson&#8217;s Latest Episode On WW2 And Churchill &#8216;Worth Watching&#8217;</a>
In July, British officials said they faced resistance from X over requests to take down posts deemed a threat to national security during the worst riots in England in more than a decade.
Musk also taunted Prime Minister Sir Keir Starmer on the platform during the unrest and said that "civil war is inevitable" in the UK. Musk did not immediately respond to a request for comment on Butler's statement.
<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">Civil war is inevitable
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1819933223536742771?ref_src=twsrc%5Etfw">August 4, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Nominations for committee chairs in the Commons closed on Monday, and elections for contested positions are set for Wednesday. 
MPs cannot force witnesses to turn up, but can deem them to be "in contempt" of Parliament if they snub a formal summons. The sanction is in practice only symbolic.
<a href="https://www.benzinga.com/government/24/09/40739165/trump-plans-to-appoint-elon-musk-to-government-efficiency-commission-if-elected-tesla-ceo-says-hell">During a speech </a>on Thursday in New York, former President Donald Trump said Musk has agreed to lead a government efficiency commission that he would form if he were re-elected president in November.
Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Musk&#8217;s electric vehicle company, is also part of the ongoing X/Twitter narrative. 
X.com&#8217;s revenue reportedly collapsed by <a href="https://www.benzinga.com/startups/24/08/40533138/as-twitters-revenue-collapses-by-84-tesla-bulls-fear-elon-musk-will-liquidate-more-tesla-stock-bring">84% with Musk in charge</a>. Now Tesla bulls are worried that Musk, the carmaker&#8217;s CEO, will liquidate Tesla stock, which would bring the company&#8217;s value down (he already sold at least $7 billion in Tesla stock to fund the acquisition). 
Price Action: Tesla gained 2.59% to $216.19 into Monday&#8217;s late-day trading.
Exchange-traded funds that hold Tesla shares
<ul>
<li>T-Rex 2X Long Tesla Daily Target ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLT#NASDAQ">TSLT</a>) gained 5.15%</li>
<li>Direxion Daily TSLA Bull 2X Shares (NASADQ: TSLL) went up 5.11%</li>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) rose 1.13%</li>
<li>The Nightview Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NITE#NYSE">NITE</a>) fell 3.07%</li>
<li>ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) gained 2.13%</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/news/24/09/40770222/elon-musk-sets-2026-for-starships-first-uncrewed-mars-mission-targeting-successful-landing">Elon Musk Sets 2026 For Starship&#8217;s First Uncrewed Mars Mission, Targeting Successful Landing</a></li>
</ul>
Image: Shutterstock

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ARKK

NITE

TSLA

TSLL

TSLT

Elon Musk To Be Summoned By UK Parliament Over Role of Social Media Platform X

U.S. stocks started the new week with strong gains, as all major indices and sectors in the S&amp;P 500 were in the green by midday in New York. This comes after Wall Street experienced its worst <a href="https://www.benzinga.com/markets">week of the year.</a>
Investors kicked off Monday with renewed optimism, anticipating a boost from Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)'s highly anticipated event and key inflation data for August, set to be released on Wednesday.
Economists are predicting a slowdown in the headline inflation rate from 2.9% in July to 2.6% year-over-year in August, potentially marking the lowest inflation level since March 2021. A lower inflation reading could reinforce market expectations for an aggressive rate-cut cycle from the Federal Reserve.
Airline stocks led the charge within industries, with the U.S. Global Jets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>) rising 2.6%, recovering from last month's losses.
In the semiconductor space, Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) surged 13%, logging its best one-day rally since February following news of the company's inclusion in the S&amp;P 500 index.
Commodities also gained ground despite a 0.3% rise in the U.S. dollar. Oil prices climbed 1.6% amid production shutdowns in the Gulf of Mexico due to storm warnings. Gold edged up 0.2%, and silver rose 1.3%.
In the cryptocurrency market, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) jumped 2.8%, heading for its third consecutive session of gains.
<h1 class="wp-block-heading">Monday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day chg. %</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,984.61</td>
<td>1.6%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,691.03</td>
<td>1.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,484.48</td>
<td>1.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>210.16</td>
<td>1.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:00 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent090924&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.3% higher to $547.30.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 1.5% to $410.13.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 1.4% to $448.38.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) was 1.1% higher to $210.10.</li>
<li>The Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, up 2%, followed by the Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>), up 1.8%.</li>
</ul>
<h1 class="wp-block-heading">Monday&#8217;s Stock Movers</h1>
<ul>
<li>Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) surged 7% on Monday after its manufacturing facility in Laval, Quebec, received a Drug Establishment License (DEL) from Health Canada. This certification confirms the facility meets stringent safety and quality standards, granting it authorization to produce drug substances.</li>
<li>MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) soared 9.3% in reaction to Bitcoin&#8217;s surge.</li>
<li>Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) rallied 7% after reports surfaced that its AI chip technology will be integrated into Apple&#8217;s upcoming iPhone 16.</li>
</ul>
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</ul>
Photo: ImageFlow on Shutterstock

Broad U.S. Equity ETFs

Econ #s

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JETS

MRNA

MSTR

PLTR

Wall Street Rallies After Last Week's Sell-Off, Palantir Soars On S&P 500 Inclusion, Airlines Rally: What's Driving Markets Monday?

Investors showed little enthusiasm for the August jobs report, as the slower-than-expected hiring numbers deepened worries about <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40748557/job-creation-falls-short-of-expectations-in-august-unemployment-rate-ticks-lower-">a softening labor market.</a>
The U.S. economy added 142,000 nonfarm jobs in August, up from July's 89,000 but falling short of the projected 160,000. The unemployment rate edged down by 0.1% to 4.3%, in line with expectations, while wages saw stronger-than-anticipated growth, rising 0.4% month-over-month.
On Friday, markets shifted sharply into risk-off mode, with all major indices dropping over 1% by midday trading in New York. 
The CBOE Volatility Index (VIX) spiked over 17% to 23 points. The Nasdaq 100 led the decline, losing over 5% for the week, eyeing its worst performance since September 2022.
Semiconductors dragged down the tech-heavy index. The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) dropped nearly 5%, while Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) fell more than 4%. The chipmaker giant extended the weekly loss to 14%, on track for its steepest decline since October 2022.
Investors dumped equities and moved into cash as the U.S. dollar strengthened despite weaker-than-expected nonfarm payroll data.
In the bond market, short-term Treasury yields tumbled, bringing the yield curve back to a normal shape after two years of inversion. The two-year Treasury yield fell below the 10-year, signaling a shift in economic outlook.
Commodities took heavy losses across the board. Gold dropped 0.9%, silver plunged 3.1% and crude oil (WTI) slid 3%, reaching $66 per barrel, the lowest since May 2023.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) also dropped, losing over 3%, as investors steered clear of crypto assets amid a broad-based decline in risk appetite.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,320.98</td>
<td>-1.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,406.64</td>
<td>-1.8%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,092.33</td>
<td>-2.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,424.39</td>
<td>-2.7%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:50 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent090624&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.8% lower to $539.77.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 1.1% to $404.13.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) tumbled 2.7% to $448.38.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 2.2% to $207.31.</li>
<li>The Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) outperformed, flat for the day, while the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 3%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
<ul>
<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) tumbled 9.9%, on track for its worst session since March 2020, following weaker-than-expected guidance.</li>
<li>Other stocks reacting to earnings included Samsara Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IOT#NYSE">IOT</a>), up 13%, Guidewire Software Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GWRE#NYSE">GWRE</a>), up 11.8% and DocuSign Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DOCU#NASDAQ">DOCU</a>), up 3.9%. </li>
<li>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) plummeted over 7% as JPMorgan downgraded the rating from Buy to Neutral and sharply lowered its price target from $950 to $500. </li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40741279/ai-tech-sector-is-not-in-a-bubble-but-diversification-out-of-magnificent-7-is-key-g">AI Tech Sector &#8216;Is Not In A Bubble,&#8217; But Diversification Out Of Magnificent 7 Is Key, Goldman Sachs Says</a></li>
</ul>
Photo created using artificial intelligence via Dall-E.

Macro Economic Events

AVGO

DOCU

GWRE

NVDA

SMCI

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Stocks Tumble On Jobs Data, Nasdaq 100 Eyes Worst Week In 2 Years As Semiconductors Slump: What's Driving Markets Friday?

Republican presidential candidate Donald Trump said on Thursday he would establish a government efficiency commission headed by billionaire supporter Elon Musk if he wins <a href="https://www.benzinga.com/markets/equities/24/09/40679572/elon-musk-cant-wait-to-work-with-trump-in-cutting-waste-and-needless-regulation-as-reports-sugge">the presidency in November</a>.
The former president said that Tesla, Inc. (NASADQt: TSLA) CEO Elon Musk agreed to head the body in a speech on his economic plans at the New York Economic Club.
&#8220;And Elon, because he&#8217;s not very busy, has agreed to head that task force,&#8221; Trump said.
&#8220;He&#8217;s be a good one to do it, if he has the time, but he&#8217;s agreed to do it.&#8221;
Trump had talked about the idea of a government efficiency commission with aides for weeks, people with knowledge of those conversations told Reuters, but Thursday&#8217;s speech was the first time he publicly endorsed the idea, the outlet reported. 
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&#8220;I will create a government efficiency commission tasked with conducting a complete financial and performance audit of the entire federal government and making recommendations for drastic reforms,&#8221; Trump said.
&#8220;We need to do it, can&#8217;t go on the way we are now.&#8221;
Trump said that fraud and improper payments cost taxpayers hundreds of billions of dollars in 2022.
&#8220;As the first order of business, this commission will develop an action plan to totally eliminate fraud and improper payments within six months.&#8221;
He said taking such action will save the U.S. trillions of dollars while keeping the same level of government services.
&#8220;It&#8217;s massive,&#8221; he said. &#8220;Trillions of dollars is wasted, gone and nobody knows where it went.&#8221;
Musk said on an Aug. 19 podcast that he had held conversations with the former president about the commission and that he would be interested in serving on the body. 
&#8220;I look forward to serving America if the opportunity arises,&#8221; Musk wrote on X on Thursday.
&#8220;No pay, no title, no recognition is needed.&#8221;
TSLA Price Action: Tesla has risen 4.06% to $228.32 as of Thursday&#8217;s mid-afternoon trading.
Exchange-traded funds that hold the stock also gained on Thursday afternoon.
<ul>
<li>T-Rex 2X Long Tesla Daily Target ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLT#NASDAQ">TSLT</a>) jumped 10.54%.</li>
<li>Direxion Daily TSLA Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLL#NASDAQ">TSLL</a>) gained 10.35%.</li>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) picked up 1.12%.</li>
<li>The Nightview Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NITE#NYSE">NITE</a>) edged up 1.43%.</li>
<li>ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) went up 1.54%.</li>
</ul>
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</ul>
Photo via Shutterstock.

Specialty ETFs

Politics

Management

Trump Plans To Appoint Elon Musk To Government Efficiency Commission If Elected, Tesla CEO Says He'll Do It For Free

Signs of a cooling labor market last month pushed major U.S. stock averages lower on Thursday, ahead of the highly anticipated August jobs report set for release on Friday.
Private sector job creation came in at 99,000 for August, according to ADP data, marking the slowest pace of growth since January 2021 and missing <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40728795/private-employment-grows-by-99-000-in-august-sharply-misses-forecasts-of-140-000-">the forecast of 140,000.</a>
A stronger-than-expected services sector activity sentiment for August offered some relief to broader recession concerns, but an employment subindex bolstered hints of the ongoing cooling <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40732534/services-sector-activity-expands-more-than-expected-in-august-but-employment-growth">in the labor market.</a>
The S&amp;P 500 dropped below the 4,500 support level for the first time since mid-August, extending weekly losses to 2.9%, and is on track for its worst week since mid-April.
Tech stocks managed to pare losses, with semiconductor shares holding steady. Blue-chip stocks underperformed, as the Dow Jones slid 0.8%, while small-cap stocks fell 0.6%.
A decision from OPEC+ to delay an October oil production increase by two months supported crude prices and further pressured already fragile investor sentiment. West Texas Intermediate (WTI) crude stopped its decline after suffering its worst two-day slump since October 2023.
Treasury yields dipped slightly, and the U.S. dollar softened. Meanwhile, gold edged higher by 0.6%.
Natural gas was Thursday's standout performer, with Henry Hub prices surging over 5%. The U.S. Energy Information Administration reported a natural gas storage injection of 13 billion cubic feet (Bcf) for the week ending Aug. 30, significantly below historical averages and expectations.
Sentiment in crypto assets worsened, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) tumbling 3% to $56,170. 
<h1 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>% change</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,906.30</td>
<td>-0.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,495.09</td>
<td>-0.5%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,132.72</td>
<td>-0.6%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,638.99</td>
<td>-0.8%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:52 p.m.</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent090524&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.5% lower to $548.40.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.8% to $407.30.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.1% lower to $459.90.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.6% to $211.35.</li>
<li>The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, up by 0.8%, while the Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) lagged, down 1.5%.</li>
</ul>
<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>
<ul>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rallied 4% after announcing it plans to roll out its Full Self-Driving (FSD) technology in China and Europe during the first quarter of 2025, pending regulatory approvals. The EV maker will also produce a six-seat Model Y variant in China, starting next year.</li>
<li>Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) announced Thursday it has reached an agreement to acquire Frontier Communications Parent Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NYSE">FYBR</a>) in an all-cash deal valued at approximately $20 billion. Shares of Verizon eased 0.6%, while those of Frontier Communication Parent plummeted 9% after rallying 37% on Wednesday.</li>
<li>United Steel Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) rose 4% after tumbling 17% Wednesday. According to Reuters, the Committee on Foreign Investment in the U.S. (CFIUS) has raised concerns about potential national security risks related to Nippon Steel&#8217;s planned $14.9 billion acquisition of U.S. Steel. </li>
<li>NIO Inc. &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) rallied 11% in reaction to upbeat quarterly results and improved guidance.</li>
<li>Other stocks reacting to earnings results included The Toro Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTC#NYSE">TTC</a>) down over 10%, Copart Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPRT#NASDAQ">CPRT</a>) down 6.7%, Hewlett Packard Enterprise Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) down 5.3%, Core &amp; Main, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNM#NYSE">CNM</a>) down 0.7%, Credo Technology Group Holding Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRDO#NASDAQ">CRDO</a>) and C3.ai, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AI#NYSE">AI</a>), both down around 13%.</li>
<li>Companies reporting results after the close include Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Samsara Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IOT#NYSE">IOT</a>), DocuSign Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DOCU#NASDAQ">DOCU</a>), Ui Path Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PATH#NYSE">PATH</a>) and Smartsheet Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMAR#NYSE">SMAR</a>). </li>
</ul>
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40718185/could-august-jobs-numbers-keep-recession-fears-at-bay-this-time-is-different-analys">Could August Jobs Numbers Keep Recession Fears At Bay? &#8216;This Time Is Different,&#8217; Analyst Says</a> Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a> on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!</li>
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Photo: Shutterstock

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Earnings

Mid Cap

Bonds

Small Cap

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CRDO

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PATH

SMAR

S&P 500 Falls Below 5,500 Points On Cooling Jobs Data, Tesla Leads Tech Gains, Natural Gas Spikes: What's Driving Markets Thursday?

Launched on 06/12/2000, the iShares U.S. Consumer Discretionary ETF (ARCA:IYC) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Discretionary - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
<h2>Index Details</h2>
The fund is sponsored by Blackrock (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/blk#NYSE">BLK</a>). It has amassed assets over $1.06 billion, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. IYC seeks to match the performance of the Dow Jones U.S. Consumer Services Index before fees and expenses.
The Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index measures the performance of the consumer services sector of the U.S. equity market.
<h2>Costs</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.62%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 68.90% of the portfolio. Telecom and Consumer Staples round out the top three.
Looking at individual holdings, Amazon Com Inc accounts for about 13.24% of total assets, followed by Tesla Inc and Home Depot Inc.
The top 10 holdings account for about 50.07% of total assets under management.
<h2>Performance and Risk</h2>
So far this year, IYC has gained about 9.43%, and was up about 20.46% in the last one year (as of 08/29/2024). During this past 52-week period, the fund has traded between $63.10 and $84.94.
The ETF has a beta of 1.16 and standard deviation of 22.22% for the trailing three-year period, making it a medium risk choice in the space. With about 182 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
IShares U.S. Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYC is a reasonable option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Discretionary ETF (ARCA:VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (ARCA:XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.55 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $18.51 billion. VCR has an expense ratio of 0.10% and XLY charges 0.09%.
<a href="https://www.zacks.com/stock/news/2328673/should-you-invest-in-the-ishares-u-s-consumer-discretionary-etf-iyc?cid=CS-BENZ-FT-sector_etf-2328673">To read this article on Zacks.com click here.</a>

iShares Trust Dow Jones USnsumer Services Sector Index Fund

Should You Invest in the iShares U.S. Consumer Discretionary ETF?

The U.S. dollar, oil prices and tech stocks surged Thursday following an upward revision of the second-quarter real gross domestic product growth to 3%, signaling the continued strength<a href="https://www.benzinga.com/government/24/08/40624663/us-economy-expands-by-3-in-q2-surpasses-earlier-estimates-jobless-claims-little-moved-last-week"> of the U.S. economy.</a>
More defensive assets like bonds and the Japanese yen fell as expectations for interest rate cuts were slightly tempered.
What Happened: The U.S. economy continues to display robust health, boasting a notable real GDP growth rate of 3% in the second quarter, revised higher from the initial estimate of 2.8% on Thursday. This represents more than double the 1.4% growth recorded in the first quarter, marking the eighth consecutive quarter of sequential growth for the U.S. economy.
The boost was primarily driven by consumer spending, which surged by 2.9% in the second quarter, an upward revision from the previously reported 2.3% and significantly higher than the 1.5% growth in the first quarter. Corporate profits also showed improvement, flipping from a 2.7% contraction in the first quarter to a 1.7% expansion in the second.
Positive signs also emerged from price pressures, as Personal Consumption Expenditure prices were revised downward in the second estimate.
The revised data also included downward adjustments to nonresidential fixed investment (4.6% vs. 5.2% earlier reported), exports (1.6% vs. 2%), private inventory investment (7.5% vs. 8.4%), government spending at both federal (3.3% vs. 3.9%) and local (2.3% vs. 2.6%) levels, and residential fixed investment (negative 2% vs. negative 1.4%). Imports were adjusted slightly higher (7% vs. 6.9%).
Why It Matters: The resilience of the U.S. economy reduces recession risks that had surfaced earlier this month following a cooler-than-expected July jobs report. 
For markets sensitive to domestic economic conditions, such as small- and medium-cap stocks, a healthy economy signals improved risk sentiment among investors.
The concurrent decline in price pressures bolsters the Federal Reserve&#8217;s confidence that inflation is trending toward its 2% target, paving the way for a September interest rate cut. 
The strong economic activity also represents a factor that could refrain the Fed from making large or swift rate cuts to avoid reigniting inflationary pressures.
Market-implied odds for a 50-basis-point rate cut in September slightly eased from 38% a day ago to the 32.5%, as per CME Group&#8216;s FedWatch data. 
Market Reactions:
<ul>
<li>U.S. Dollar: The U.S. Dollar Index, tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), rallied 0.4% in response to the GDP data, building on a 0.5% gain from Wednesday.</li>
<li>Bonds: Treasury yields edged higher, causing the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) to decline by 0.5%.</li>
<li>Japanese yen: The USD-JPY pair rose 0.7% on Thursday to 145.35 levels. The Invesco CurrencyShares Japanese Yen Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXY#NYSE">FXY</a>) fell 0.7%. </li>
<li>Stocks: The S&amp;P 500 as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up by 0.3%. The tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), climbed 0.8%, despite a 2.2% drop in Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).</li>
<li>Sector Performance: The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) led sector gains, up 0.9%.</li>
<li>Oil: The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) rose by 2.2%, fully reversing Wednesday&#8217;s losses.</li>
<li>Gold: The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) rose 0.4% to $2,515 per ounce.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40624107/traders-brace-for-feds-favorite-inflation-report-friday-july-price-pressures-expect">Traders Brace For Fed&#8217;s Favorite Inflation Report Friday: July Price Pressures Expected To Edge Higher</a></li>
</ul>
Illustration created using artificial intelligence via MidJourney.

Forex

PowerShares DB US Dollar Index Bullish Fund

US Dollar, Oil Prices, Tech Stocks Rise As GDP Roars By 3% In Q2; Bonds, Yen Slip As Bets For Large Rate Cuts Ease

Urban Outfitters (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/urbn#NASDAQ">URBN</a>) is a mid-cap firm in the consumer discretionary sector. In 2024, the company&#39;s shares vastly outperformed their sector, with a total return of over 16% before its recent earnings.
The SPDR Consumer Discretionary Select Sector Fund (ARCA:XLY) has returned just under 5%. The company reported fiscal Q2 2025 earnings on Aug 21. I&#39;ll provide some background on the firm&#39;s operations and then review its earnings report and conference call. I&#39;ll close with some outlook of the company.
<h2>Urban Outfitters: Traditional Retail Combined with a Market Differentiator</h2>
Urban Outfitters operates as three reportable segments: Retail, Wholesale, and Nuuly. The company&#39;s retail segment consists of its physical stores and websites through which it directly sells to consumers. Its notable retail store brands are Anthropologie, Free People, and Urban Outfitters.
&nbsp;Anthropologie caters to sophisticated and contemporary women aged 28 to 45, making up 43% of the company&#39;s total revenues in 2023. Free People targets contemporary women aged 25 to 30 and makes up 21% of the firm&#39;s total revenues.
Urban Outfitters targets young adultsF aged 18 to 28 who are &quot;culturally sophisticated, self-expressive, and actively engaged with their peer group.&quot; It made up 26% of the company&#39;s total revenues.
The wholesale segment sells Free People and Urban Outfitters clothing to department stores. It makes up 4.6% of total revenues.
The Nuuly segment is one area where Urban Outfitters differentiates itself considerably compared to massive apparel companies like Nike and Lululemon (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lulu#NASDAQ">LULU</a>). Nuuly offers a subscription service for women&#39;s clothing, allowing customers to rent a variety of clothing pieces.
Customers select products to rent for a month and then send them back to receive new products the next month. The available items stretch beyond the clothes the company makes itself, including third-party and vintage products. The Nuuly segment made up 4.6% of total revenues.
<h2>Urban Outfitters Beats on Headline Number but Shows Underlying Weakness</h2>
Urban Outfitters beat estimates on&nbsp;adjusted earnings per share (EPS) and revenue.&nbsp;Adjusted EPS came in at $1.24, 24% above analyst expectations and an increase of 13% from the past year. Net sales came in at $10 million above analyst expectations at $1.35 billion, 6% above analyst expectations.
Comparable sales for the retail segment increased by 2%. Free People grew by 7.1%, Anthropologie grew by 6.7%, and Urban Outfitters decreased by 9.3%. Nuuly&#39;s sales were impressive. They rose 63% from last year&#39;s quarter, well above expectations.
Despite many positives in the company&#39;s earnings release, a few factors caused the market to react sourly. First, comparable sales at Urban Outfitters stores came in below analysts&#39; expectations.
This isn&#39;t the first time this has happened recently. Urban Outfitters stores&#39; comparable sales dropped 14% in fiscal Q1 2025 and fiscal Q4 2024, as Free People and Anthropologie both saw strong growth.
<h3>Earning&#39;s Call Causes Concern for the Namesake Business</h3>
In the company&#39;s earnings call, executives used dramatic wording about the Urban Outfitters stores. Shea Jensen, President of Urban Outfitters America, said the firm has been reviewing the brand for six months.
She had strong words about that review: &quot;What we have learned is that while there is a great deal of opportunity for improvement, the brand is not fundamentally broken.&quot; It is good that they have ways to improve, but even suggesting the brand might be &quot;fundamentally broken&quot; is alarming.
She noted that through the pandemic, the market saw &quot;rapid and seismic shifts as the generational passage from millennials to Gen Z&quot; occurred. She admitted that the company essentially lost track of how to win their young buyers, causing their customer funnel to erode.
She laid out a five-pillar plan for how the firm intends to restore the business, saying, &quot;Our first step is to understand the Gen-Z customer.&quot; She added that in the firm&#39;s research, they &quot;heard very clearly that customers perceive us as expensive.&quot;
Shares were down nearly 13% in after-hours and premarket trading on Aug. 21 and 22.
<h2>Restoring the UO Brand is Not a Quick Fix</h2>
Overall, the market wants Urban Outfitters to restore its namesake business. That will take a while, especially since the firm says it is just now starting to understand the Gen-Z customer.
Also, the perception that the brand is expensive will weigh it down based on the currently depressed economic sentiment. However, the company can likely restore the brand eventually. Strength in its other segments shows that it is able to market to customers successfully.
The article &quot;<a href="https://www.nasdaq.com/articles/urban-outfitters-stock-dips-can-gen-z-strategy-boost-sales">Urban Outfitters Stock Dips: Can a Gen-Z Strategy Boost Sales?</a>&quot; first appeared on MarketBeat.

LULU

URBN

Urban Outfitters Stock Dips: Can a Gen-Z Strategy Boost Sales?

As the <a href="https://www.benzinga.com/earnings">earnings season</a> unfolds, more businesses are sharing perspectives on consumer trends. 
According to a Bloomberg <a href="https://www.bloomberg.com/opinion/articles/2024-07-16/us-consumer-health-is-fine-shoppers-are-just-getting-pickier?sref=TBDibEcD">analysis</a>, retailers are frustrated over the lack of spending on the part of shoppers. And yet, retail sales soared by 1%<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"> month-over-month in July</a>.
The sharp rebound from stagnation in June surprised economists who expected an uptick of just 0.3%. The data also threw off analysts who expected consumers to pull back on spending <a href="https://www.benzinga.com/topic/inflation">due to stubborn inflation</a>.
Turns out, consumers are spending &#8212; they&#8217;re just picky <a href="https://www.benzinga.com/topic/retail">about where they shop</a>. 
For example, spending intentions for leisure and housing are on the rise, according <a href="https://www2.deloitte.com/us/en/insights/economy/consumer-pulse/state-of-the-us-consumer.html">to</a> Deloitte. Sectors like clothing, however, are experiencing low intention levels compared to 2021.
"Consumer spending has been muted this year due to volatile goods spending, with overall spending going up by only 0.3% since year-end 2023," said the report.
The University of Michigan&#8217;s monthly consumer sentiment index proclaimed <a href="https://www.benzinga.com/markets/equities/24/07/39750466/us-consumer-morale-dips-more-than-expected-in-july-sentiment-remains-stubbornly-subdued">July as the worst month</a> for consumers since November 2023. However,<a href="https://www.benzinga.com/news/econ-s/24/08/40419637/us-consumer-confidence-rebounds-in-august-expectations-are-subject-to-change-as-presidential-campaig"> sentiment picked up in August</a>.

<h2 class="wp-block-heading">What Companies Are Saying </h2>
Home Depot Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) felt the sting of <a href="https://www.benzinga.com/24/08/40381559/home-depot-ceo-says-inflation-keeps-eating-away-at-disposable-income-are-home-repairs-being-put-off">homeowners holding off on renovations until interest rates come down</a>. The company&#8217;s second-quarter comparable sales decreased 3.3%, with U.S. comparable sales down 3.6%, <a href="https://www.benzinga.com/news/earnings/24/08/40334855/home-depot-q2-earnings-customer-transactions-decline-cites-weaker-home-improvement-spending-but-rai">reflecting weaker consumer demand</a>.
Macy&#8217;s Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/M#NYSE">M</a>) also saw consumers turning away from more expensive items. Second-quarter sales hovered at around $4.94 billion — down 3.8% year over year.
Macy&#8217;s CEO Tony Spring <a href="https://www.cnbc.com/2024/08/21/macys-m-q2-2024-earnings.html">told</a> CNBC that "a softness, a carefulness, a delay in the conversion of purchasing&#8221; are to blame.
&#8220;Even the affluent consumer is not spending like they were a year ago,&#8221; he added.
Macy&#8217;s released mixed second-quarter results that <a href="https://www.benzinga.com//node/40484046">missed analyst consensus and forced it to lower its guidance</a>. 
Other retailers had better luck. 
TJX Companies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TJX#NYSE">TJX</a>) shares jumped by over 6% on Wednesday. The company, which owns TJ Maxx, Marshalls, HomeGoods and Sierra, among other brands, <a href="https://www.benzinga.com/news/earnings/24/08/40484279/tjx-companies-q2-earnings-strong-sales-higher-margins-invests-in-dubais-brands-for-less">posted a 4% increase in store sales</a>. 
The jump in sales was driven entirely by a net rise in customer transactions, said the company, which was surprised by the results and raised its guidance for next year. 
A sales uptick for TJX might mean consumers are choosing to direct their discretionary spending toward discount prices found in stores like TJ Maxx and Marshalls.
An earnings report from Ross Stores Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NASDAQ">ROST</a>), scheduled for Thursday, might confirm the trend. Analysts from Zachs expect the company to post revenues of $5.25 billion, representing a year-over-year increase of 6.3%.
Strong quarterly results from Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) took shares 9% higher after the company's <a 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">earnings results were posted Thursday</a>. 
Sales for the quarter totaled $169.34 billion, up 4.8% year-over-year, beating expectations and pushing the company to raise its guidance.
"So far, we aren&#8217;t experiencing a weaker consumer overall," said CEO C. Douglas McMillon. The retail exec also reported a deflationary trend in its U.S. store prices. Walmart shares <a href="https://www.benzinga.com//node/40486532">rose on Wednesday</a> in response to positive results from 
Walmart CFO John David Rainey said: &#8220;Everyone is looking for some piece of information that maybe indicates further weakness with our members and our customers, <a href="https://www.benzinga.com//node/40446780">we&#8217;re not seeing it</a>.&#8221; 
Rainey said his company is not immune to the volatility of the day, especially when considering the geopolitical backdrop. &#8220;Other economic data out there, as well as the state of affairs globally, would suggest that it&#8217;s prudent to remain appropriately cautious,&#8221; he said. 
Target Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) sales <a href="https://www.benzinga.com/news/earnings/24/08/40482203/target-q2-earnings-revenue-and-profit-beat-digital-sales-boost-annual-profit-outlook-hiked">were up by 2.7% and also beat market expectations</a>. CEO Brian Cornell noted improving trends across discretionary categories, most notably in apparel and beauty products.
Consumers have shown remarkable resilience in the face of multiple challenges over the last several years, and they remain resilient today, he said, adding:&nbsp;"Given the significant headwinds they faced with inflation over the last few years, consumers continue to focus on value as they work hard to manage their household budgets.&#8221;
Chief Commercial Officer Rick Gomez said that while economic data remains mixed, American families continue to deal with a lot but are still "willing and able to spend."&nbsp;
"Yes, they&#8217;re still being choiceful. Yes, they&#8217;re budget conscious. And yes, they&#8217;re hunting for deals and everyday value. But they&#8217;re also willing to shop when they find that right combination of fashion and newness at the right price. This was on full display in our second quarter results," said Gomez.
<h2 class="wp-block-heading">ETFs To Watch </h2>
<ul>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>), an ETF that follows the performance of major companies in industries such as retail, automobiles, consumer durables, apparel, hotels and restaurants, is up by 1.1% on Wednesday and down 1.3% in the last month.</li>
<li>Vanguard Consumer Discretionary Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) presents a similar performance, up 1.3% on Wednesday and down 0.5% in the last month.</li>
</ul>
Now read:
<ul>
<li><a href="https://www.benzinga.com//node/40492530">Fed Minutes Reveal &#8216;Plausible Case&#8217; For Interest Rate Cut As Policymakers Cheer Inflation Progress</a></li>
</ul>
Shutterstock image.

General

ROST

Is The Consumer OK? What We Know From Retailers About Spending In 2024

McDonald&#8217;s Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) shares are<a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener"> trading higher on Wednesday.</a>
The company is set to <a target="_blank" href="https://www.mcdonalds.com/gb/en-gb/newsroom/article/50th-social-and-economic-impact-report.html" rel="noreferrer noopener">invest</a> £1 billion ($1.30 billion) in the U.K. and Ireland over the next four years, aiming to open new restaurants and generate over 24,000 jobs.
The new restaurants are part of McDonald&#8217;s ongoing investment to adapt to evolving customer expectations.
The rollout will feature new formats, including recently launched &#8216;Drive to&#8217; locations and additional smaller formats being tested this year, ensuring each new restaurant aligns with the needs of its community.
&#8220;We&#8217;re proud of what we have delivered in the last 50 years and are committed to investing in new opportunities and supporting growth across the UK,&#8221; said Alistair Macrow, CEO, McDonald&#8217;s UK&amp;I.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40457537/us-stocks-may-take-a-breather-after-s-p-500s-impressive-8-session-winning-streak-strategist-says-ma" rel="noreferrer noopener">US Stocks May Take A Breather After S&amp;P 500&#8217;s Impressive 8-Session Winning Streak: Strategist Says Market Will Hit Fresh Highs In Next 4 Weeks, But Warns Investors Of Potential Risks</a>
The plan to build over 200 new restaurants in the U.K. is in line with McDonald&#8217;s target of building 10,000 more restaurants globally by 2027.
McDonald&#8217;s expects net restaurant unit expansion to contribute nearly 2% to 2024 <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/40008869/mcdonalds-q2-earnings-consumer-spending-shifts-hit-revenue-and-operating-margins-franchise-revenue-" rel="noreferrer noopener">Systemwide sales growth in constant currencies.</a>
According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, MCD stock has gained over 3% in the past year. Investors can gain exposure to the stock via Neuberger Berman Next Generation Connected Consumer ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NBCC#NYSE">NBCC</a>) and Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>).
Price Action: MCD shares are trading higher by 1.18% to $289.00 at last check Wednesday.
Photo by nlinnlin on Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40230750/kfc-owner-yum-brands-sees-slower-sales-growth-goldman-sachs-analyst-revises-forecast" target="_blank" rel="noreferrer noopener">KFC Owner Yum Brands Sees Slower Sales Growth, Goldman Sachs Analyst Revises Forecast</a></li>
</ul>

Movers

Neuberger Berman ETF Trust Neuberger Berman Next Generation Connected Consumer ETF

NBCC

What's Going On With McDonald's Stock Today?

Americans are feeling optimistic about the economy given stabilizing inflation and shifting election sentiments. This is especially true as consumer sentiment rose in early August for the first time in five months. Rising consumer sentiment bodes well for household spending in the coming months. It is expected to have a positive impact on the consumer discretionary sector, which attracts a major portion of consumer spending.
Investors can tap the encouraging trend in the basket form through consumer discretionary ETFs like Consumer Discretionary Select Sector SPDR Fund (ARCA:XLY), Vanguard Consumer Discretionary ETF (ARCA:VCR), Fidelity MSCI Consumer Discretionary Index ETF (ARCA:FDIS), First Trust Consumer Discretionary AlphaDEX Fund (ARCA:FXD) and iShares U.S. Consumer Services ETF (ARCA:IYC). These funds have a Zacks ETF Rank #3 (Hold).
The latest University of Michigan consumer sentiment index climbed from 66.4 in July to 67.8, marking the highest reading of consumer sentiment since June. This has sparked strong optimism surrounding the economy and the stock market, which eased concerns about a cooling labor market in early August.
According to the survey, inflation expectations remained stable at 2.9% over the next year and 3% over the next five to 10 years. Consumers&#39; expectations of inflation over the next year remain at their lowest level since December 2020.
Most of the rise in confidence came from presidential election developments. Sentiment for Democrats rose 6% as Vice President Kamala Harris gained ground in public polling while sentiment for Republicans fell 5%. The survey showed that 41% of consumers believe Harris is the better candidate for the economy, while 38% said Trump is better.
Consumer Discretionary Select Sector SPDR Fund
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 52 securities in its basket, with key holdings in specialty retail, hotels, restaurants and leisure, broadline retail, and automobiles with a double-digit allocation each.
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $18.6 billion and an average daily volume of around 3 million shares. It charges 0.09% in expense ratio.
Vanguard Consumer Discretionary ETF
Vanguard Consumer Discretionary ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 302 stocks in its basket. In terms of industrial exposure, broadline retail, automobile manufacturers and restaurants occupy the top three spots.
Vanguard Consumer Discretionary ETF is the low-cost choice in the space, charging investors only 10 bps in annual fees while volume is good at nearly 61,000 shares a day. The fund has managed $5.4 billion in its asset base so far.
Fidelity MSCI Consumer Discretionary Index ETF
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 274 stocks in its basket. It has key holdings in broadline retail, specialty retail, hotels, restaurants and leisure, and automobiles.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.6 billion in its asset base while trading in a good volume of around 137,000 shares a day on average. It charges 8 bps in annual fees from investors.
First Trust Consumer Discretionary AlphaDEX Fund
First Trust Consumer Discretionary AlphaDEX Fund follows an AlphaDEX methodology and ranks stocks in the space by various growth and value factors, eliminating the bottom-ranked 25% of the stocks. This approach results in a basket of 120 stocks with retailers, travel and leisure, media&nbsp;&nbsp;&nbsp; and personal goods taking double-digit exposure each.
First Trust Consumer Discretionary AlphaDEX has an AUM of $1.5 billion and trades in a volume of 47,000 shares per day on average. It charges a higher 61 bps in annual fees.
iShares U.S. Consumer Services ETF
iShares U.S. Consumer Discretionary ETF offers exposure to U.S. companies that distribute food, drugs, general retail items and media by tracking the Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index. It holds 176 stocks in its basket, with key holdings in consumer discretionary, consumer services, media &amp; entertainment, consumer staples distribution &amp; retail, and autos &amp; components.
iShares U.S. Consumer Discretionary ETF has amassed $1 billion in its asset base and trades in a moderate volume of 123,000 shares a day on average. It charges 40 bps in annual fees from investors.
<a href="https://www.zacks.com/stock/news/2324514/etfs-to-tap-as-consumer-sentiment-improves?cid=CS-BENZ-FT-etf_news_and_commentary-2324514">To read this article on Zacks.com click here.</a>

First Trustnsumer Discretionary AlphaDEX Fund

ETFs to Tap as Consumer Sentiment Improves

It&#8217;s a relatively uneventful session on Wall Street, but with a slightly worsening risk sentiment as all U.S. equity indices traded in the red at around midday trading in New York. If the S&amp;P 500 and Nasdaq 100 close lower today, it will break their current eight-day winning streak, a run that has nearly erased the losses <a href="https://www.benzinga.com/markets/equities/24/08/40450395/s-p-500-nasdaq-100-extend-8-session-winning-streak-as-wall-street-jitters-go-poof-mondays-key-st">sustained earlier this month.</a>
Traders remain cautious as they await key economic events later this week. On Wednesday morning, the Bureau of Labor Statistics will release its &#8220;2024 Preliminary Benchmark Revision to Establishment Data,&#8221; which will include non-farm payroll revisions covering the period from April 2023 to March 2024.
Later in the day, at 2 p.m. E.T., the Federal Reserve will release the minutes from the July Federal Open Market Committee (FOMC) meeting.
The Jackson Hole Symposium kicks off on Thursday, where Fed officials are expected to make headlines during media interviews. On Friday, Fed Chair Jerome Powell will take center stage<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40466528/jackson-hole-preview-5-important-questions-ahead-of-jerome-powells-fed-speech"> with a live address at 10:00 a.m. ET.</a>
Small caps underperformed large cap on Tuesday, and nine out of 11 S&amp;P 500 sectors were in negative territory, with the exclusion of healthcare and consumer staples.
A measure of the U.S. dollar fell 0.4%, tumbling to the lowest level since late December 2023. The Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) is experiencing its worst three-day performance year-to-date.
Treasury yields also fell, with more significant declines at the long end of the curve. The long-dated iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rose 0.8%, poised for its third consecutive session in the green and the seventh in the last eight.
Meanwhile, gold remained steady at record-high levels of $2,500 per ounce, while oil prices declined by another 0.5%, marking their third straight drop. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slipped 1.2% to $58,755.
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,596.06</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,798.22</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,688.81</td>
<td>-0.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,142.31</td>
<td>-1.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:55 p.m. ET</figcaption></figure>
<h1 class="wp-block-heading">According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent082024&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:</h1>
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.3% lower to $558.24.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;eased 0.1% to $408.70.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.4% lower to $479.50.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 1.3% to $212.42.</li>
<li>The Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) and The Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) outperformed, both up by 0.3%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down by 2.1%.</li>
</ul>
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
<ul>
<li>Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) rallied 8.6% in reaction to its better-than-expected quarterly results. </li>
<li>Other stocks reacting to company earnings were Lowes Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>), down 1.3%, Medtronic plc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MDT#NYSE">MDT</a>) up 1.9%, Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>) up 19%. </li>
<li>PayPal Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) rose 3.1% after JPMorgan Chase &amp; Co. raised the stock price target from $77 to $80. </li>
<li>Eli Lilly &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) rose by 2% after the company reported that a three-year phase 3 study demonstrated that weekly tirzepatide injections reduced the risk of developing type 2 diabetes by 94% in obese or overweight adults with pre-diabetes, compared to those who received a placebo.</li>
<li>Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) tumbled over 4% after announcing that it is grounding its 777X test fleet due to issues discovered in an engine mounting structure.</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40466528/jackson-hole-preview-5-important-questions-ahead-of-jerome-powells-fed-speech">Jackson Hole Preview: 5 Important Questions Ahead Of Jerome Powell&#8217;s Fed Speech</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a>&nbsp;on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. 
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!
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PANW

PYPL

Wall Street Eases, Bonds Rise, US Dollar Falls To 8-Month Low: What's Driving Markets Tuesday?

Wall Street kicked off the week leading up to the Federal Reserve&#8217;s Jackson Hole Symposium with a positive momentum as traders anticipate reassuring signals from policymakers about the impending start of interest rate cuts, following further easing <a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40365730/july-inflation-rate-falls-more-than-expected-supports-hopes-for-large-fed-rate-cu">of inflation last month.</a>
Both the S&amp;P 500 and the Nasdaq 100 were positive by 1:30 p.m. ET, eyeing their eighth straight session in the green. All the eleven S&amp;P 500 sectors recorded a gain, indicating widespread bullish sentiment.
With the corporate earnings season nearing its end, nearly 95% of S&amp;P 500 companies have already reported results. According to FactSet data, 79% of these companies have delivered a positive earnings per share (EPS) surprise, while 60% have reported better-than-expected revenue. The blended year-over-year earnings growth rate for the S&amp;P 500 stands at 10.9%, marking the strongest growth since Q4 2021.
Growing confidence that the Federal Reserve will begin its monetary easing cycle in September pushed the U.S. dollar index below the 102 level, a threshold last seen on January 2, 2024.
The weakening of the U.S. dollar sparked a rally in emerging-market stocks, with the iShares MSCI Emerging Markets Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EEM#NYSE">EEM</a>) rising 0.9% on Monday, setting it on course for its ninth positive close in the last 10 sessions.
U.S. small caps also rebounded, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) climbing 0.7%, breaking above its 50-day moving average and slightly outperforming large-cap indices.
In the commodities market, gold held steady at $2,500 per ounce after hitting record highs on Friday, its best-performing session since December. Oil prices fell 2.4% as the absence of retaliation from Iran against Israel has reduced some of the risk premium in crude prices.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) edged 0.5% higher after a 1.8% drop on Sunday.
<h3 class="wp-block-heading">Monday&#8217;s Performance In Major US Averages, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>0.8%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>0.5%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>0.4%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>0.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:12 p.m. ET</figcaption></figure>
According to Benzinga Pro data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.5% higher to $557.03.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;also rose 0.5% to $408.88.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged up 0.4% to $476.92.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;rallied 0.8% to $214.17.</li>
<li>The&nbsp;Energy Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and&nbsp;The Consumer Discretionary Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, both up by 1%. The&nbsp;Consumer Staples Select&nbsp;Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) lagged, up by 0.4%.</li>
</ul>
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>
<ul>
<li>McDonald&#8217;s Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) rallied 3.3% after Evercore ISI adjusted the stock price target from $300 to $320, maintaining an Outperform rating. </li>
<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) rose 2.5% after the company announced the acquisition of ZT System, a supplier of artificial intelligence infrastructure, in a cash-and-stock deal valued at $4.9 billion.</li>
<li>General Motors Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) rose 0.8% after laying off over 1,000 salaried employees globally in its software and services division as part of a review aimed at streamlining operations.</li>
<li>Amer Sports Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>) rallied over 8% ahead of its quarterly earnings report, scheduled in the premarket on Tuesday. </li>
<li>Stocks reacting to company earnings included The Estee Lauder Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EL#NYSE">EL</a>) and ZIM Integrated Shipping Services Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZIM#NYSE">ZIM</a>). </li>
<li>Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) and Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>) will publish their results after the close. </li>
</ul>
Read now: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40443620/goldman-sachs-is-bullish-on-nvidia-ahead-of-earnings-risk-reward-for-ai-stock-favor">Goldman Sachs Is Bullish On Nvidia Ahead Of Earnings: Risk-Reward For AI Stock &#8216;Favorable&#8217;</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Emerging Markets

S&P 500, Nasdaq 100 Target Eighth Straight Gain As Dollar Nears 2024 Lows; Small Caps, Emerging Markets Rebound: What's Driving Markets Monday?

Wall Street edged slightly higher on Friday, with major equity indices showing modest gains <a href="https://www.benzinga.com/markets">at midday in New York.</a>
Both the S&amp;P 500 and Nasdaq 100 are on track to record their best week since October 2023, driven by stronger-than-expected economic data that eased earlier concerns of a recession. If they close in the green, they will secure the seventh straight positive session. 
On Friday, the University of Michigan&#8217;s Consumer Sentiment Index for August exceeded expectations, adding to a series of positive data, including lower-than-anticipated jobless claims and strong retail sales growth reported the day before.
Gold was the standout performer, climbing 1.5% to reach a record high of $2,500 per ounce, as traders positioned themselves in anticipation of imminent Federal Reserve rate cuts.
This surge in gold prices boosted gold mining stocks, with the VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) advancing over 2%.
Oil prices, however, dipped 1.6% amid reduced geopolitical tensions as Gaza ceasefire negotiations resumed in Doha, Qatar. In a joint statement, the United States, Qatar, and Egypt announced that Washington had presented a new proposal that has the potential to rapidly close gaps and lead to a swift agreement.
Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 1.6%, reaching $58,368.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices </td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,142.44</td>
<td>0.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,552.80</td>
<td>0.1%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,619.51</td>
<td>0.1%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,507.26</td>
<td>0.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:30 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent081624&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.1% higher to $553.81.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;also rose 0.1% to $406.32.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.2% up to $475.31.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) ticked 0.2% higher to $212.42.</li>
<li>The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>), The Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>), and The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, up by 0.5%. The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) lagged, down by 0.5%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
<ul>
<li>H&amp;R Block Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRB#NYSE">HRB</a>) rallied 15% following stronger-than-expected results last quarter.</li>
<li>Other stocks moving on earnings were Amcor plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMCR#NYSE">AMCR</a>), down 5%, Applied Materials Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>), down 1.5%, Coherent Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COHR#NYSE">COHR</a>), up 8%, Flower Foods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLO#NYSE">FLO</a>), down 0.3%, and Globant S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLOB#NYSE">GLOB</a>), up 4.9%. </li>
<li>Repligen Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGEN#NASDAQ">RGEN</a>) dropped 13% after making an acquisition offer to Maravai LifeSciences Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVI#NASDAQ">MRVI</a>), a company specializing in vaccine capping reagents with a market value of $2.2 billion. Following the offer, Maravai&#8217;s shares surged by 23%.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40420968/walmart-stock-one-of-the-most-compelling-retail-investments-7-analysts-highlight-ma">Walmart Stock &#8216;One Of The Most Compelling&#8217; Retail Investments: 7 Analysts Highlight Market Share Gains</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

AMAT

AMCR

COHR

Market Vectors ETF Trust Market Vectors Gold Miners

GLOB

MRVI

RGEN

Wall Street Gains Ground As Consumer Sentiment Improves; Gold Hits Record Highs, Boosting Mining Stocks: What's Driving Markets Friday?

Editor&#8217;s note: This story has been updated to correct a subheading on Thursday&#8217;s stock movers.
Thursday saw one of the most pronounced risk-on sessions in Wall Street&#8217;s rebound from the selloff earlier in the month, as investors cheered the latest economic data, suggesting that earlier recession fears <a href="https://www.benzinga.com/topic/economics">were likely overblown</a>. 
Small-cap stocks outperformed their larger counterparts, with the Russell 2000 index soaring nearly 3% for its <a href="https://www.benzinga.com/markets/equities/24/08/40401329/russell-2000-set-for-strongest-session-in-a-month-as-us-economy-defies-recession-fears-small-cap">best day in a month</a>. Both the S&amp;P 500 and Nasdaq 100 are on track to extend their winning streaks to six consecutive sessions.
Robust retail sales figures for July, far exceeding expectations, and a decline in initial jobless claims contributed to the market&#8217;s enthusiasm. 
Retail sales figures released for July showed a 1% month-over-month increase, significantly higher than the 0.3% expected by analysts and a sharp <a href="https://www.benzinga.com/24/08/40396952/retail-sales-numbers-were-a-blowout-versus-consensus-but-economists-predict-fed-will-still-cut-rates">rebound from June&#8217;s stagnation</a>. This data, coupled with a decrease in initial unemployment claims last week to 227,000, provided a strong signal the U.S. economy might be more resilient than previously thought.
The positive economic data led to a shift in expectations regarding future Federal Reserve actions. The likelihood of a 50-basis-point rate cut in September diminished, with traders now assigning a 73% probability to a smaller 25-basis-point cut.
As expectations for aggressive monetary easing faded, bond yields surged, causing a 1.1% decline in the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>). The U.S. dollar also strengthened, with the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) rising 0.3%, bolstered by a widening yield differential that pushed the greenback up over 1% against the Japanese yen.
In commodities, gold edged up 0.4%, while silver saw a substantial 3% rally. Crude oil prices rose by 1.6%, closing at $77.60 per barrel. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) also experienced a 2% gain, reflecting the broader risk-on sentiment in the market.
<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs </h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>3.0%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>2.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>1.6%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>1.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:39 p.m. ET</figcaption></figure>
According to<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent081524&amp;t=be2bearmibe3na1"> Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.6% higher to $552.26.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 1.3% to $405.32.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 2.4% to $473.46.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rocketed 3% to $212.89.</li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up by 2.5%. The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) lagged, down by 0.3%.</li>
</ul>
<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>
<ul>
<li>Ulta Beauty Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ULTA#NASDAQ">ULTA</a>) skyrocketed by 12% after Warren Buffett&#8217;s Berkshire Hathaway revealed a significant new investment of approximately $260 million in the company.</li>
<li>Cisco Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NYSE">CSCO</a>) rallied 7% after reporting stronger-than-expected results last quarter. </li>
<li>Other stocks moving in reaction to earnings reports included Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), up 0.3%, AST SpaceMobil Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NYSE">ASTS</a>), up 43%, Deere &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DE#NYSE">DE</a>), up 6.6%, monday.com Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNDY#NASDAQ">MNDY</a>), up 1.1%, JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), up 4.4% and Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), up 6.5%. </li>
<li>Companies reporting after the close are Applied Materials, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>), Coherent Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COHR#NYSE">COHR</a>) and H&amp;R Block, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRB#NYSE">HRB</a>)</li>
</ul>
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Photo via Shutterstock.

ASTS

BABA

CSCO

MNDY

ULTA

Wall Street Eyes Sixth Positive Session On Upbeat Economic Data, Bonds Fall As Traders Lose Conviction In Large Rate Cuts (CORRECTED)

Cannabis consumer packaged goods company Auxly Cannabis Group Inc. (TSX:<a class="ticker" href="https://www.benzinga.com/stock/XLY#TSX">XLY</a>) (OTCQB:<a class="ticker" href="https://www.benzinga.com/stock/CBWTF#OTCQB">CBWTF</a>) announced on Thursday its second quarter financial results for the three months ended June 30, 2024, revealing net revenues of CA$29.2 million ($21.3 million). That's an increase of 33% year-over-year and 16% compared to the previous quarter.
&#8220;After our best start to a year ever, we are thrilled to report our best Q2 in history, with exceptional financial performance setting a new Q2 record in revenue and all-time records in gross margin and adjusted EBITDA," said CEO Hugo Alves. "We are particularly proud of our significant gains in market share across all three of our core product categories, especially in the vapor segment where we are currently leading the growing all-in-one category, securing an impressive 32% share of market."
Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/05/38793658/auxly-cannabis-achieves-record-q1-adjusted-ebitda-soars-1-523-revenue-grows-5-strong-2024-ahead">Auxly Cannabis Achieves Record Q1: Adjusted EBITDA Soars 1,523%, Revenue Grows 5%, Strong 2024 Ahead</a> 
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/events/cannabis-conference/"><img loading="lazy" decoding="async" width="970" height="250" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/15101103/CCC-Oct-24-Banner-1-50.gif" alt="" class="wp-image-497007" /></a></figure>
<h3 class="wp-block-heading">Q2 2024 Financial Highlights</h3>
<ul>
<li>Gross profit was CA$15.9 million, resulting in a 55% gross margin compared to CA$6.1 million resulting in a 28% gross margin in the prior year's period.</li>
<li>Selling, general and administrative expenses were CA$9.3 million in the second quarter of 2024, CA$0.5 million or 6% higher than the same period in 2023, primarily due to non-recurring restructuring-related costs during the period.</li>
<li>Net income was CA$2 million as compared to a net loss of CA$12.9 million in the same period of 2023.</li>
<li>Total other incomes and losses were a net loss of CA$0.1 million compared to a net loss of CA$1.6 million in the comparative period of 2023.</li>
<li>Adjusted EBITDA came in positive at CA$5.2 million representing an improvement of CA$6.3 million over the same period of 2023, primarily due to improvements in gross profits and SG&amp;A.</li>
</ul>
<h3 class="wp-block-heading">CBWTF Price Action</h3>
Auxly's shares traded 0.61% higher at $0.033 per share after the market close on Wednesday.
Read Next
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37924655/canadian-cannabis-companies-could-see-valuations-soar-by-up-to-300-with-tax-reform-">Canadian Cannabis Companies Could See Valuations Soar By Up To 300% With Tax Reform, New Report Shows</a></li>
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Cannabis

CANNABIS WHEATON INCOME by Cannabis Wheaton Income Corp.

CBWTF

TSX:XLY

Auxly Cannabis Co Sets Q2 Record In Revenue Following 33% YoY Increase, Reports Best Quarter In History

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