Shares of major retailers like Target (TGT 62.66, +1.11, +1.80%), Walmart (WMT 87.41, +1.59, +1.85%), and Best Buy (BBY
48.99, +0.75, +1.55%), among others, are on track for a higher start to the Wednesday
session after MasterCard's SpendingPulse report pointed to solid growth in
holiday sales. The SpendingPulse report, which tracks sales activity, covers
all payment methods, including cash and check.
MasterCard's report noted that holiday sales from November 1 through December 24 increased 4.9% while online sales grew 18.1%. This was the strongest yr/yr growth rate since 2011, resulting in a new record for dollars spent.
The SpendingPulse report showed that sales of electronics and appliances increased 7.5%, which was the strongest growth rate during the last ten years. Sales of home furniture, furnishings, and home improvement articles increased 5.1%.
The first three weeks of November saw the most significant increase in shopping activity, but last-minute sales were also strong. As a result, December 23 was only second to Black Friday when it comes to single-day spending.
MasterCard's report suggests that retailers will report strong results for the quarter, which includes the holiday period. This could prove to be a near-term positive as retail stocks look to rebound from recent weakness, but it remains to be seen whether these names are able to stage a meaningful bounce, or if they succumb to renewed selling driven by concerns about economic growth in the near future.
- OUR VIEW
- LEARNING CENTER