E. J. Antoni, a financial economist at the Heritage Foundation, claimed during an appearance on “The Big Money Show” that U.S. inflation statistics since President Biden took office are “astronomical.”
Investors looking to understand the true state of inflation should pay close attention to where and how consumers are spending their money, as Larry McDonald, founder of the Bear Trap Report, points out. Two exchange-traded funds tell part of this story. When appearing on FOX Business.
The Consumer Discretionary Choice Sector SPDR ETF, whose top holdings include General Motors, Chipotle and Deckers, has fallen for the year as consumers trade in spending on goods they want for goods they need.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| XLY | Consumer Discretionary Sector SPDR ETF | 178.71 | +0.92 | +0.52% |
By comparison, the Consumer Staples Select Sector SPDR ETF is up more than 8%. Major holdings include Procter & Gamble, Costco, and Walmart.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| XLY | Consumer Discretionary Sector SPDR ETF | 178.71 | +0.92 | +0.52% |
Walmart, the nation’s largest retailer, said this week that it continues to attract higher-income shoppers — those with incomes above $100,000.
“Companies are spending more of their payroll on non-discretionary areas and less on general merchandise, so the impact is less,” Chief Financial Officer John David Rainey told analysts on Thursday’s earnings call. I think this is reflected in our business specifications.”
Wealthy shoppers flock to Walmart in droves.
Walmart stock hit a record high this week after the company’s quarterly results.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| barbie | Burberry Group PLC | 14.075 | -0.53 | -3.60% |
An overview of the Burberry store’s holiday window display on December 11, 2013 in New York City. ((Photo: Ben Heider/Getty Images))
Burberry, the luxury fashion house whose brand’s traditional men’s trench coats retail for more than $2,500, gave investors a bombshell by revealing annual profits fell 34% and same-store sales fell 1%. Dropped.
Burberry Chief Executive Jonathan Aykroyd said in the report: “It has been difficult to execute on our plans against a backdrop of slowing demand for luxury goods.”
Luxury fashion house Burberry revealed a 34% drop in annual profit and a 1% drop in same-store sales. ((Photo credit: Claudio Lavenia/Getty Images))
April’s consumer price index created a mixed picture for Wall Street.
Inflation rate remains high in April
The Bureau of Labor Statistics reported that annual inflation continued to rise, hovering at 3.4% versus 3.5% in March, but month-on-month prices fell to 0.3% versus 0.4%.
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