As the retail sector gained Monday, one group of suffering stocks led the way, jumping 1.2 percent: the multiline retail stock group, which includes names such as Target, Dollar Tree and Nordstrom.
The average national gas price recently fell to $2.29 from $2.33 a week ago, according to AAA’s Daily Fuel Gauge, translating into more available funds for consumer discretionary spending.
Barron’s wrote over the weekend that Dollar Tree is expected to outperform compared to estimates, based on long-term gains from its acquisition of Family Dollar. The stock rose 1.8 percent on Monday.
Retail ETFs also seem to be at an inflection point and the money flow looks to turn positive.
After being down about 5% this calendar year, retail is moving higher and may one of the few winners by the end of the year.