The Consumer Price Index rose 2.7% in the 12 months through July, according to data published last Tuesday, unchanged from the June rate and less than what economists had expected.
Consumer stocks delivered a mixed performance last week amid the release of key inflation and retail sales data.
The Consumer Discretionary Select Sector SPDR Fund (XLY) climbed 2.6%, marking its second straight weekly gain, but the Consumer Staples Select Sector SPDR Fund (XLP) declined 0.6% last week, after a 2.9% rise in the prior week.
Official data showed that annual U.S. consumer price inflation growth held steady, controlled by lower fuel prices. The Consumer Price Index rose 2.7% in the 12 months through July, unchanged from the June rate and less than what economists had expected.
Retail sales rose at 0.5% in the month, in line with expectations and lower than the 0.9% growth in June, according to data released on Friday.
Here are the consumer sector stocks that posted top gains:
Lennar Corp (weekly gain 9.2%)
The stock is on a four-week winning streak and has been high on investors’ radar since the U.S. home builder’s quarterly report early last month. Lennar topped sales estimates in the previous quarter. This, coupled with strong results from peers D.R. Horton and PulteGroup, has fueled optimism of a nascent rebound in a housing market that has remained sluggish for years.
The stock bump last week came mainly from Warren Buffett’s Berkshire Hathaway disclosing that it bought shares in the company in the June quarter. On Stocktwits, the retail sentiment for LEN is ‘extremely bullish.’
Ebay (weekly gain 8.1%)
Ebay, which has over the years pivoted to focusing on products that appeal to enthusiasts and collectors, has also advanced after its quarterly results. Investors are calling eBay a surprise winner in the tariff era after it reported better-than-expected second-quarter results and offered an upbeat forecast.
The shares have surged 30% since the company’s July 30 earnings report and continued to advance last week, despite Argus cutting its rating to ‘Hold’ from ‘Buy’. On Stocktwits, the retail sentiment for EBAY is ‘bullish.’
Chipotle Mexican Grill (weekly gain 6.3%)
Shares of the burrito chain broke a five-week losing streak last week, staging a relief rally after a stretch of declines dragged by weak earnings.
On July 23, Chipotle reported worse-than-expected quarterly sales and lowered its topline outlook for the full year, citing weak dine-out trends due to economic uncertainty.
President Donald Trump’s policies, particularly tariffs, are seen as fueling inflation and squeezing businesses, prompting consumers to rein in spending. On Stocktwits, the retail sentiment for CMG is ‘bearish.’
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