🛒 Li Auto Surges on Strong Deliveries Amid Tesla and Carnival Declines, as Amazon Faces FTC Lawsuit and Xpeng Grows in Europe | Retail Sector Insights
Tesla has been added to Wells Fargo's Q4 2024 Tactical Ideas List with an Underweight rating, amid concerns about delivery growth and declining auto gross margins.
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Below are AI-generated insights on moves in the consumer discretionary sector, powered by MarketReader technology.
Tuesday, October 1
XLY [-1.4%]
Consumer Discretionary Select Sector SPDR Fund (XLY)
The Consumer Discretionary Select Sector SPDR Fund (XLY) has seen a decline of 1.4% since Monday. Key holdings such as Tesla (TSLA), Amazon (AMZN), Booking Holdings (BKNG), Home Depot (HD), and TJX have all contributed negatively to the fund's performance. Tesla has been added to Wells Fargo's Q4 2024 Tactical Ideas List with an Underweight rating, amid concerns about delivery growth and declining auto gross margins. Concurrently, port strikes are expected to pressure margins in retail and automotive sectors, prompting some retailers to consider increased air freight usage. Additionally, PwC's holiday outlook suggests that the average shopper may spend significantly more this year, reflecting consumer resilience despite inflation. Macroeconomic indicators show mixed signals, with the ISM Manufacturing PMI indicating contraction and JOLTs Job Openings exceeding expectations, while construction spending unexpectedly declined.