Holiday Spending Recap and Key Stock Updates

Holiday Spending Recap and Key Stock Updates

Mastercard reported that U.S. holiday retail sales rose 3.8% from November 1 to December 24, exceeding their earlier forecast of 3.2% and last year's 3.1% increase. Categories like jewelry (+4%), electronics (+3.7%), and apparel (+3.6%) saw significant growth. Online sales jumped 6.7%, outpacing in-store growth of 2.9%, driven by value-conscious consumers leveraging e-commerce for deals. The last five days of the season accounted for 10% of total holiday spending.

Sector Trends and Key Performers:

Amazon (AMZN): Despite a slight dip (-0.87%) in its latest session, Amazon shares are up 11.33% over the past month, outperforming the Retail-Wholesale sector (+2.87%) and the S&P 500 (+1.05%). Its strong performance underscores its dominance in e-commerce, benefiting from budget-conscious shoppers.

Walmart (WMT): Walmart continues to gain market share alongside Amazon, further solidifying its position in the retail space.

Mastercard (MA): Mastercard’s SpendingPulse data highlights robust consumer spending, aided by a strong labor market and wealth gains, with high-income households driving discretionary purchases.

Meanwhile, discounters like Costco and specialty retailers (e.g., Abercrombie & Fitch) fared better, while struggling companies such as Kohl’s and Foot Locker faced challenges. The focus on value widened the gap between retail winners and losers, with some, like The Container Store and Party City, filing for bankruptcy.

The holiday season underscored strong consumer demand, but also revealed a shifting retail landscape favoring value and market leaders like Amazon and Walmart.