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The retail sector outperformed the broad market on Tuesday after the August retail sales report largely surprised to the upside. Retail sales increased 0.1% in August after an upwardly revised 1.1% increase in July, according to the Commerce Department’s Census Bureau.
Dada Nexus (DADA) led the gains with a 20.0% pop after JD.com added to its stake in the company. Other notable movers included Newegg Commerce (NEGG) +11.5%, iPower (IPW) +10.5%, ThredUp (TDUP) +8.8%, Stitch Fix (SFIX) +8.8%, Torrid Holdings (CURV) +7.5%, RCI Hospitality (RCI) +4.8%, Portillo’s (PTLO) +4.5%, Wayfair (W) +4.4%, Kura Sushi (KRUS) +4.1%, and Revolve Group (RVLV) +3.8%. Restaurants stocks Papa John’s International (PZZA), Brinker International (EAT), and Dutch Bros (BROS) were all up around 3%.
In the S&P 500 Index, Airbnb (ABNB) +3.9% and Estee Lauder (EL) +2.9% were two of the biggest gainers. Ulta Beauty (ULTA), Bath & Body Works (BBWI), Booking Holdings (BKNG), and Dollar Tree (DLTR) also saw modest gains ahead of the broad market.
“For all the signs that low-income consumers are struggling, we think the risks of that weakness migrating up the income spectrum are low,” stated Oxford Economic Deputy Chief Economist Michael Pearce. “Middle- and higher-income households sit on considerable wealth gains since the pandemic, mainly reflecting the surge in housing equity,” he added.