No surprise: consumer discretionary companies are highly dependent on consumers having jobs and income. As such, consumer discretionary stocks, as measured by the XLY ETF, fell while new unemployment insurance claims spiked. And, as new unemployment claims have come back to earth, the XLY has jumped. Eventually, for consumer discretionary companies to thrive we’ll actual need to see real gains from consumers — gains in jobs and income, neither of which we’re seeing now.
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