CONSUMER DISC (XLY)

U.S.

U.S. consumers struggling with rising housing costs, slower wage growth, and unemployment fears may have to cut back on discretionary spending.

Wedbush’s Dan Ives said that Musk spending "110% of his time with DOGE" since Trump returned to the White House has caused a "political lightning rod" issue.

Oppenheimer has warned that investor focus has shifted to consumer backlash over Musk's political activities and declining 2025 sales expectations.

Sentiment on Stocktwits inched up in the bullish zone.

According to a Reuters report, a U.S. judge dismissed a lawsuit that accused the company of using an algorithm making its private-label products cheaper than other goods.

ETFs tracking consumer staple and consumer discretionary firms gained 1.46% and 0.16%, respectively on Monday.

Despite the upgrade, sentiment on Stocktwits turned ‘bearish’ from ‘neutral’ a day ago.

Stocks were little moved during midday Monday trading in New York, as a mixed retail sales report failed to generate a bullish response from investors.

U.S. retail sales miss expectations in Feb, raising concerns about consumer strength. However, some areas show resilience & economy not near recession.

Telsey Advisory analyst Dana Telsey lowered the price target on Ulta to $460 from $500 with an ‘Outperform’ rating,

Analysts expect an 11.4% drop in third-quarter sales — the worst decline in the last five quarters — and a 70.6% drop in EPS, according to Koyfin data.

The upgrade follows Morgan Stanley’s 'overweight' revision from 'equal weight' last month.

Inflation cooled in February, sparking hopes of interest rate cuts. Sectors that could benefit are consumer discretionary, tech, and real estate. Consider XLY, XLK, and IYR ETFs.

In January, the company received a ratings upgrade from Morgan Stanley from ‘Equal Weight,’ to ‘Overweight.

Institutions have been selling out of discretionary consumer names lately, signaling a loss of confidence in the underlying economy and spending.

The stock has now erased all gains from Trump's election victory in November, when investors bet Musk's ties to the president would benefit the EV maker.

Jefferies reportedly expects the company to double its market share in experiences to 6%, adding $8 billion in bookings and $1.6 billion in revenue by 2030.