Overall, discretionary stocks gained more than staples last week.
Consumer stocks advanced last week, with a significant boost coming in on Friday following Federal Reserve Chair Jerome Powell’s indication of an interest rate cut next month.
The Consumer Discretionary Select Sector SPDR Fund (XLY) rose 1.8%, notching gains for the third straight week, while the Consumer Staples Select Sector SPDR Fund (XLP) rose 0.6%.
The benchmark S&P 500 gained 1.5% on Friday and 0.3% for the whole week, after Powell’s dovish remarks at the Jackson Hole conference.
Here are the top gainers in the consumer and retail space:
Royal Caribbean Group (weekly gain 9.8%)
The cruise line operator’s share gained for the second week, driven by steady investor confidence after the company reported strong second-quarter results and raised its annual profit forecast late last month.
Signals from the travel sector, including from booking sites and airlines, suggest a rebound in activity, especially international travel.
Last week, investment advisory firm Tigress Financial raised its price target on the stock to $415 from $330, providing some lift.
Deckers Outdoor Corp (weekly gain 6%)
Shares of the shoe retailer also registered gains for a second straight week, sans a significant catalyst.
While the U.S. tariffs on Southeast Asian manufacturing hubs, such as Vietnam, are expected to weigh on the fundamentals for brands like Deckers, the industry is aggressively seeking ways to mitigate those challenges.
Deckers, known for its Hoka and UGG shoes, won investors’ vote of confidence after outlining plans to strategically pace new launches and implement stricter inventory controls last month.
MGM Resorts (weekly gain 6%)
MGM Resorts and its fellow casino and hotel chains rallied strongly after Friday’s rate cut signal.
Given their real estate-heavy businesses, where expansion largely occurs through debt, even small changes to the borrowing rate have a significant impact on the company’s financials.
MGM is investing millions in ongoing renovations across its Las Vegas properties, as well as developing Japan’s first integrated casino-resort in Osaka and another in Dubai.
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