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Consumers remain in decent financial shape heading into a big week for data.
Market Domination co-host Josh Lipton joins Wealth anchor Brad Smith to break down what investors can expect from Walmart (WMT) earnings, April retail sales, and consumer sentiment reports.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
We're set to get a fresh look at the state of the consumer this week. Yahoo Finance's Josh Lipton is here with us now on more on what we can expect here, Josh. What are we watching for?
That's right, Brad. So, investors, we know, always eager for more insight into the health and resilience of the American consumer and this week, they will get more important data on that front, including Walmart's first quarter earnings, we've got retail sales and University of Michigan Consumer Sentiment. So, what has been the state of the consumer as we head now into these reports? Well, the Bank of America Institute says consumers continue to show moderate spending momentum with most being in good financial health. April card spending per household was up 1% year over year, that follows a 1.1% rise in March, according to Bank of America aggregated credit and debit card data. They say the financial position of most consumers appears sound. Now, check out the XLY, that's the consumer discretionary ETF. It is down about 5% this year, but it's up around 20% now from that April 8th low. The Tulsi Advisory Group, a consulting brokerage firm focused on the consumer sector, says a barbell approach to the consumer does make sense, given that lower to middle income consumers face more challenges and will need to stretch their dollars and spending on basics, while the upper income consumer, they argue, has the means to continue spending on goods and services. In the apparel and footwear category, they are fans of Birkenstock. As for consumer technology plays, it's Amazon and Warby Parker. For department stores, Burlington, and among the discounters and supermarkets, they tell their clients Costco and Walmart remain top picks, Brad.
All right, we're going to be watching for this closely here. Thanks so much for lining this up for us.
Got it.
