The Consumer Discretionary SPDR (NYSE: XLY) is experiencing a strong rally after several of its holdings reported better than expected earnings this week.
Increased spending on discretionary items is a positive sign for the economy, signaling consumers are confident enough with their current fiscal situation to start spending their money on wants rather than needs.
As this longer-term shift continues to benefit the discretionary sector, the calendar could also give the related stocks a boost. With Christmas only nine weeks away, U.S. retailers are gearing up for what should be a strong holiday season.
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The top holdings in the ETF are from a variety of industries and include The Walt Disney Company, Comcast Corporation, The Home Depot, Inc., and Amazon.com, Inc.
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