Retail Sector Stocks Will Sell More Than Others

Big moves are about to occur in the stock market, and the retail sector will be one of the sectors to sell more than others

Walmart started the year off with earnings that beat expectations. However, the trail giant is guiding for lower-than-anticipated revenue and profits through 2025. From this, the broad stock market took a hit. This is a wake-up call. Interest rates will remain higher, especially since the latest CPI data pushed above the 3.00% level. This will tie the hands of the Federal Reserve, who would rather see interest rates move lower. Next, the consumer has to deal with tariffs, which are going to drive prices higher, which, again, will keep the Fed’s hands tied. The combination means lower revenue growth for discretionary expenditures.

While discretionary stocks are modestly lower today, it is the retail sector, more specifically, that is likely to see an outsized move lower from these economic constraints.

In this video, I outline my plan of attack on XRT ETF.