Since the S&P 500’s closing high in late July, most industries in the index have seen declines.  Of the 60+ active industries, just ten are up since the close on 7/26, and only one (Construction Materials) is up over 5%.  On the downside, eleven industries are down over 10%, including Energy Equipment and Services which is down 19%!

Among the 11 major sectors, one where there has been disparate performance among the individual industries within it is Consumer Discretionary.  The graphic below shows each of the industries within the Consumer Discretionary sector, their overall weight in the S&P 500, the performance of the largest stocks in each industry, a performance summary, and then a snapshot of where each industry is trading with respect to its 52-week range (red or green circle) and where it was trading on the day of the S&P 500’s peak.

While the Consumer Discretionary sector remains in the upper end of its one-year range after trading near 52-week highs back in late July, individual industries are all over the map with respect to their 52-week ranges.  For starters, Distributors, which is a very small industry, is trading right near 52-week lows. Similarly, another three industries (Textiles, Auto Components, and Autos) are in the lower half of their one-year ranges.  Outside of these four industries, the remaining seven are all in the upper half of their 52-week range, and two are even up since the S&P 500 peaked in late July.  As shown in the graphic, Multiline Retail has rallied 2% since late July and is trading closer to the high end of its 52-week range than any other industry in the sector.  Who would have thought a couple of months ago that Multiline Retail would be a leading industry in the sector?  But that’s what happens when a stock like Target (TGT), which is the largest stock in the industry, rallies 20% on earnings.

Behind Multiline Retail, the only other industry in the sector that is up since 7/26 is Household Durables, and that group’s strength has been driven by homebuilding stocks which have benefited from extremely low-interest rates and better affordability. Start a two-week free trial to Bespoke Institutional to access our interactive Security Analysis tool and much more.

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