From Nasdaq: 2025-01-27 08:52:00

The Consumer Discretionary sector, represented by the XLY ETF, shows resilience with key moving averages reclaimed. However, U.S. consumer sentiment dipped to 71.1 in January, raising concerns. Retail sales grew by 0.4% in December, but jobless claims rose to 223,000. The sector’s technical performance remains positive, but sentiment indicators weaken.

Earnings reports from Amazon (Feb 6) and Tesla (Jan 29) could determine the sector’s future. Amazon’s results will reflect consumer spending trends, impacting the sector. Tesla’s earnings will offer insights into discretionary spending and consumer confidence. Strong performance from these companies could strengthen the sector, while weaker results may raise concerns.

The XLY ETF faces challenges despite maintaining its uptrend, with $220 support crucial. Declining sentiment and cautious consumer behavior pose risks. Amazon and Tesla earnings will be pivotal, shaping the sector’s momentum. Investors should closely monitor these events to determine whether the uptrend holds or a defensive approach is needed.



Read more at Nasdaq:: A Pivotal Moment for the Consumer Discretionary Sector