Tuesday’s ETF To Watch: Consumer Discretionary SPDR (XLY)

Equity markets have been very choppy as of late, as traders remain unsure of the market’s direction going into the summer. With details of the financial reform, Gulf oil spill and the recent G-20 summit swirling, uncertainty is running high as the curtain falls on the second quarter. However, recent news on the consumer front may suggest that things have bottomed out. On Monday, personal income and outlays for May were released and the numbers were encouraging to many analysts. Personal incomes rose 0.4% month over month, while consumer spending rose 0.2% using the same measure. This suggests that not only did incomes grow (which will give consumers more buying power), but that consumers are not socking away money and are spending a good percentage of their income. This trend should be encouraging to many discretionary firms, although many ETFs tracking the sector failed to react positively to the news. [...] Click here to read the original article on ETFdb.com. Related Stories: Consumer Discretionary ETFs Surge on Confidence News Beyond XLY: Three Pure Play Consumer Discretionary ETFs Three ETFs To Watch This Week: EFN, ITB, IHF