Retail Inventories Ex Auto (Dec) +0.6%, Prior -0.9%
Portfolio Pulse from Benzinga Newsdesk
December's Retail Inventories excluding autos showed an increase of 0.6%, a reversal from the prior month's decrease of 0.9%. This indicates a potential buildup of inventory levels in the retail sector.
January 25, 2024 | 1:32 pm
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NEUTRAL IMPACT
The increase in Retail Inventories Ex Auto suggests a potential buildup in inventory which could impact consumer spending and retail sector performance, influencing the SPY as it reflects the broader market.
While an increase in retail inventories can suggest optimism about future sales, it can also lead to concerns about overstocking and potential discounts, which may affect retail companies' profitability and thus the broader market index like SPY. However, without specific details on the distribution of inventory levels across sectors, the impact on SPY is considered neutral in the short term.
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