Shares of consumer discretionary companies experienced a turnaround in premarket trading on Friday, driven by new data indicating a moderation in the jobs market during October. This development has fueled hopes that interest rates may have reached their peak.
Rebounding ETF Performance
The Consumer Discretionary Select Sector ETF (XLY) made a notable recovery, rising by 0.7% after initially being down 0.3% prior to the release of the data. Several active components of the ETF demonstrated positive momentum, with Tesla Inc. (TSLA) surging by 1.4%, marking its fourth consecutive gain. Similarly, Amazon.com Inc. (AMZN) saw a gain of 0.6% following a pre-data loss of 0.4%. Ford Motor Co. (F) also experienced an upward trend, adding 1% to its value after a pre-data increase of 0.4%. Additionally, Carnival Corp. (CCL) exhibited significant growth of 1.7%, compared to its pre-data gain of 0.4%. Starbucks Corp. (SBUX) saw a modest increase of 0.1% after initially dropping by 0.2% before the data was released.
Positive Turnaround for SPDR S&P 500 ETF
In parallel, the SPDR S&P 500 ETF (SPY) managed to reverse its earlier dip of 0.1%, now showing a modest increase of 0.4%.
These developments indicate a potential shift in the performance of consumer discretionary companies, fueled by the optimism surrounding the moderation of the jobs market and the subsequent impact on interest rates.