Vanguard Consumer Discretion ETF (ARCA: VCR)

最新ニュース Vanguard Consumer Discretion ETF (ARCA:VCR)

Vanguard Consumer Discretion ETF

Vanguard Consumer Discretion ETF - DNQ

Consumer Cyclical

Consumer Defensive

Technology

Communication Services

Industrials

Other

Energy

Healthcare

The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index/Consumer Discretionary 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the consumer discretionary sector, as classified under the Global Industry Classification Standard. The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. It is non-diversified.

Amazon.Com Inc

Tesla, Inc.

Home Depot Inc/The

Mcdonald'S Corp

Booking Holdings, Inc.

Lowes Cos., Inc.

Tjx Cos., Inc.

Nike Inc

Starbucks Corp

Chipotle Mexican Grill Inc. Class A

Vanguard Consumer Discretionary ETF

Vanguard Core Bond ETF

VCREDIT HLDGS LTD by VCREDIT HLDGS LTD

Vanguard Tax-Managed Funds Vanguard Core Tax-Exempt Bond ETF

Tesla Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) stock is facing a sharp decline, and <a href="https://www.benzinga.com/etfs">ETFs with significant exposure</a> to the EV giant are experiencing pressure. With declining European sales, earnings below expectations, and scrutiny on CEO Elon Musk's leadership, Tesla&#8217;s challenges are impacting many ETFs and testing investor confidence.
Leveraged ETFs have taken an especially hard hit. For instance, the Simplify Volt TSLA Revolution ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TESL#NYSE">TESL</a>) has tumbled 44% since Dec. 17, 2024, when Tesla last peaked.
While leveraged products are seeing the most dramatic swings, broad-market and sector ETFs with significant Tesla holdings are also feeling the pain. Here are some of the hardest-hit funds:
Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) has tumbled 12.2% since Dec. 17. The ETF has a 17.30% weighting in Tesla.
With a 15.9% weighting in Tesla, Nightview Fund NITE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NITE#NYSE">NITE</a>) has been affected by Tesla's recent decline. The ETF has fallen 10.3% during the same period.
Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) has allocated 13.32% of its assets under management to Tesla. This ETF has seen an 11.3% decline since the EV maker&#8217;s December peak.
Another group facing the fallout? Investors in South Korea, who have heavily bet on leveraged Tesla products. According to Bloomberg News, Korean <a href="https://www.bloomberg.com/news/articles/2025-02-28/tesla-s-40-plunge-burns-koreans-who-plowed-into-leveraged-etfs">investors </a>were the largest holders of the Leverage Shares 3x Tesla ETP, a product designed to deliver three times Tesla's daily returns. The catch? The ETP has lost more than 80% since its December high, mirroring Tesla's 41% plunge over the same period. The losses have prompted local brokerage Mirae Asset Securities Co. to suspend orders for some of the riskiest leveraged ETPs.
What's Driving Tesla's Decline?
Shares of Tesla have fallen roughly 40% from their late 2024 high, including a 17% drop this week. The downturn comes as Tesla faces declining European sales, earnings below expectations, and investor concerns over CEO Elon Musk's political involvement. The broader market has also been under pressure.
What's Next for Tesla And Affected ETFs?
For now, <a href="https://www.benzinga.com/trading-ideas/technicals/25/02/44043021/tesla-the-only-magnificent-seven-stock-in-freefall-can-it-reverse-course">catalysts for a Tesla turnaround appear scarce</a>. Analysts don't expect any major updates on its fully self-driving vehicle plans soon, and competition is heating up, said another <a href="https://finance.yahoo.com/news/tumbling-tesla-shares-leave-investors-103000445.html">report </a>by Bloomberg. China's BYD Co. recently announced it would offer advanced driver-assistance features on nearly all future models at no extra cost.
The significant overvaluation of the stock is another worry. Tesla is trading at 95.24 times forward earnings (per&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent022825&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data), far above the S&amp;P 500's 21x average, and this is keeping investors cautious. Options traders are also bracing for more downside, as they are now paying the highest premium for protection against further declines since last August's market rout, noted Bloomberg.
Still, Tesla has a history of defying expectations. As David Mazza, CEO of Roundhill Financial, told Bloomberg, "We expect Tesla to remain under near-term pressure as investors weigh the benefits of Musk's ‘First Buddy' premium with the reality of their EV business struggling in strategically important markets."
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/02/43986236/how-nvidias-q4-earnings-could-impact-major-etfs">How Nvidia&#8217;s Q4 Earnings Could Impact Major ETFs</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Sector ETFs

Broad U.S. Equity ETFs

Tech

ETFs

NITE

TESL

TSLA

Select Sector SPDR-Consumer Discretionary

Tesla's Sharp Drop Sends Shockwaves Through These ETFs

Macro Economic Events

WIIM

Economics

Shares of retail and consumer discretionary ETFs are trading lower following weaker-than-expected consumer confidence data. The sector was also under pressure last week following weak outlook from Walmart.

With Tesla Inc's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) fourth-quarter earnings set to be unveiled after the market closes Wednesday, all eyes are on how the electric carmaker's performance <a href="https://www.benzinga.com/etfs">might affect the ETFs</a> with large allocations in the company. 
Tesla has been a powerhouse for several high-profile ETFs, and as it prepares to report its latest results, these funds are drawing investor attention.
Simplify Volt TSLA Revolution ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TESL#NYSE">TESL</a>) employs an active management strategy focused on capturing Tesla's price movements while managing downside risks with advanced options. It has $20.8 million in assets and a 1.20% expense ratio. The ETF&#8217;s price has returned 131.58% in the past year.
Another fund closely watching Tesla is the ARK Autonomous Technology &amp; Robotics ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKQ#BATS">ARKQ</a>), which focuses on companies benefiting from technological advancements in energy, automation, and transportation. Tesla, holding a dominant 13.7% of the fund, leads a basket of 36 stocks. This fund charges a fee of 0.75%. 
Also noteworthy is the Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>), which allocates about 11% of its assets to Tesla. This ETF, charges a mere 0.10% annual fee.
These ETFs will be keenly watching the company's upcoming earnings to gauge the stock&#8217;s next move.
Also Read: <a href="https://www.benzinga.com/news/global/25/01/43251316/tesla-faces-boycott-call-in-poland-over-musks-wwii-comments">Tesla Faces Boycott Call In Poland Over Musk&#8217;s WWII Comments: &#8216;No Normal Pole Should Buy&#8217;</a>
<h3 class="wp-block-heading">Tesla's Q4 Earnings Preview</h3>
Tesla has been riding high, with shares soaring about 51% over the past three months.
Tesla&#8217;s fourth-quarter revenues are expected to come at $27.13 billion, up from $25.17 billion in last year&#8217;s fourth quarter, and earnings per share at 74 cents, up from 71 cents, according to data&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012825&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">from Benzinga Pro</a>.
At this point, it is important to recall that Tesla&#8217;s delivery numbers missed analyst expectations for the fourth quarter, with the company delivering 495,570 vehicles—just shy of <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42777950/teslas-first-sales-drop-splits-wall-street-2025-will-be-the-prove-it-year">the 498,000 expected.</a>
The company&#8217;s delivery shortfall marked the first-ever year-over-year decline in its full-year vehicle deliveries.
The rollout of cheaper EV models and investments in AI projects further bolster Tesla's long-term prospects, even as the company faces increased competition and a challenging global market.
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43289930/tesla-q4-earnings-preview-2025-delivery-growth-fsd-model-y-refresh-new-vehicles-among-key-topics">Tesla's upcoming results</a> are crucial not just for the company itself, but also for the ETFs heavily invested in its stock.
Read Next:
<ul>
<li> <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/01/43307113/2-etfs-that-help-investors-avoid-sanctioned-securities">2 ETFs That Help Investors Avoid Sanctioned Securities</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Specialty ETFs

ARKQ

Tesla's Q4 Results Could Shake Up These 3 ETFs

On Wednesday, Amazon.com&nbsp;Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/topic/amazon" rel="noreferrer noopener">announced that it</a> was withdrawing its operations in Quebec, Canada, and losing about 1,700 full-time jobs.
The move will also affect approximately 250 seasonal workers. Amazon agreed to compensate for the loss with a package including up to 14 weeks&#8217; pay and job placement resources, Reuters cites Amazon spokesperson Barbara Agrait.
The American e-commerce giant&#8217;s move followed U.S. President Donald Trump&#8217;s threat to slap <a target="_blank" href="https://www.benzinga.com/25/01/43101141/chinese-stocks-rally-after-trump-skips-tariff-threats-boosting-market-optimism" rel="noreferrer noopener">25% tariffs on</a> imports from Canada and Mexico on February 1.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/11/42216863/nvidia-intel-suppliers-rethink-mexico-operations-amid-trumps-tariff-threat" rel="noreferrer noopener">Nvidia, Intel Suppliers Rethink Mexico Operations Amid Trump&#8217;s Tariff Threat</a>
Amazon has seven sites in Quebec, including sorting centers and warehouses, most of which are in the Montreal area.
Over the next two months, Amazon will phase out operations across seven sites in the province, the only location in Canada with unionized Amazon employees. To save costs, it will return to a third-party delivery model.
According to a CTV news report, Amazon <a target="_blank" href="https://www.ctvnews.ca/montreal/article/amazon-is-ceasing-operations-in-quebec/" rel="noreferrer noopener">had lost the challenge</a> against workers to unionize in the labor tribunal in October.
In 2023, Amazon Web Services (AWS) launched <a target="_blank" href="https://www.benzinga.com/news/23/12/36321525/amazons-aws-unveils-major-expansion-in-canada-a-gateway-to-unprecedented-growth-and-opportunities" rel="noreferrer noopener">its second infrastructure</a> region in Canada, the AWS Canada West (Calgary) Region.&nbsp;
The Amazon cloud unit released an economic impact study projecting a $17.9 billion investment in Canada through 2037, surrounding the new Calgary region and the existing Quebec region, supporting over 9,300 full-time equivalent jobs annually.&nbsp;
Amazon stock surged 51% in the last 12 months. Investors can gain exposure to the stock through Vanguard Consumer Discretion ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) and SPDR Select Sector Fund &#8211; Consumer Discretionary (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>).
Price Action: AMZN stock traded lower by 0.32% to $234.25 premarket at the last check on Thursday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/25/01/43139410/softbanks-role-in-500-billion-stargate-ai-venture-seen-as-major-growth-driver-analyst-says" target="_blank" rel="noreferrer noopener">SoftBank&#8217;s Role in $500 Billion Stargate AI Venture Seen as Major Growth Driver, Analyst Says</a></li>
</ul>
Image Via Shutterstock

Government

News

Regulations

Media

AMZN

Amazon To Shut 7 Quebec Fulfillment Centers, Axe Around 2,000 Jobs

Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)&nbsp;paused <a href="https://www.benzinga.com/topic/drones" target="_blank" rel="noreferrer noopener">commercial drone</a> delivery last Friday in Texas and Arizona to fix the aircraft&#8217;s software.
The suspension followed the crash of two of its latest models at a testing facility in rainy weather, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-17/amazon-pauses-drone-deliveries-after-aircraft-crashed-in-rain?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
Amazon and Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) have <a target="_blank" href="https://www.benzinga.com/top-stories/24/06/39192891/amazon-vs-walmart-who-will-be-the-first-to-conquer-the-skies-with-drone-delivery" rel="noreferrer noopener">splurged billions to</a> develop drone delivery technology. Amazon created the technology in-house while Walmart collaborated with Zipline and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google&#8217;s Wing.
Also Read: <a href="https://www.benzinga.com/tech/25/01/43008511/broadcoms-latest-san-switch-offers-scalable-energy-efficient-solution-for-growing-storage-demands" target="_blank" rel="noreferrer noopener">Broadcom&#8217;s Latest SAN Switch Offers Scalable, Energy-Efficient Solution for Growing Storage Demands</a>
Drone delivery services will likely become a&nbsp;$10 billion industry&nbsp;by the decade&#8217;s end.
Amazon&#8217;s drone operation <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39093895/amazons-drone-program-to-expand-with-new-faa-clearance-whats-on-the-move" rel="noreferrer noopener">aims to deliver</a> 500 million packages annually by the decade&#8217;s end.
Eleven years ago, Amazon founder&nbsp;Jeff Bezos&nbsp;shared plans to build drones capable of delivering products to customers in less than half an hour.
In December, two MK30 drones crashed during flights at the airport in Pendleton, Oregon, which Amazon uses for testing.
The company later discovered a software issue that caused the accident.
The MK30 drones, cleared to commence operations by the Federal Aviation Administration in October, have delivered packages to customers&#8217; homes in College Station, Texas, and Tolleson, Arizona.
Amazon representative Sam Stephenson told Bloomberg that deliveries will resume after the FAA approval.
Stephenson emailed Bloomberg, stating Amazon&#8217;s drones continued to deliver safely and within federal guidelines between the December crashes and Friday&#8217;s halt.
In December, the company completed its <a href="https://www.benzinga.com/news/23/10/35323630/amazons-drone-delivery-service-to-extend-to-uk-and-italy" target="_blank" rel="noreferrer noopener">first test flight</a> in Italy and plans to expand its service this year. It is also targeting the start of deliveries in the U.K.
Goldman Sachs&#8217; Eric Sheridan <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42899163/goldman-sachs-analyst-is-bullish-on-amazon-but-not-ebay-or-etsy" target="_blank" rel="noreferrer noopener">expressed optimism about</a> Amazon&#8217;s customer loyalty, backed by its subscription. The analyst flagged Amazon&#8217;s exposure to less discretionary categories (experiencing volatility in online spending from lower incomes) with high repeat behavior through subscriptions and essentials purchasing.
Amazon stock surged over 48% in the past 12 months. Investors can gain exposure to the stock through ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>) and Vanguard Consumer Discretion ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>).
AMZN Price Action: Amazon stock is up 2.42% at $231.42 last check Tuesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/media/25/01/43004444/intel-plans-to-spin-off-5-billion-venture-capital-segment-will-remain-anchor-investor" target="_blank" rel="noreferrer noopener">Intel Plans To Spin Off $5 Billion Venture Capital Segment, Will Remain Anchor Investor</a></li>
</ul>
Photo: Shutterstock

GOOG

GOOGL

ONLN

Amazon Pauses Drone Deliveries In Texas, Arizona After Crashes, Plans Safety Upgrades

The year of milestones, 2024, has seen an unperturbed rise in the current bull market, which is nearly <a href="https://www.benzinga.com/24/12/42430296/carson-researchs-50-year-study-suggests-that-the-26-months-old-bull-market-is-far-from-over">26 months</a> old. It is higher by more than 70% from the mid-October 2022 lows. As we wrap up the year with the possibility of a &#8216;Santa Rally,&#8217; let&#8217;s recap 2024&#8217;s landmark junctures.
<h3 class="wp-block-heading">Major U.S. Benchmarks Scale Fresh Records</h3>
The S&amp;P 500 Index has made 57 new all-time highs this year, hitting the last one on Dec. 6, 2024. Also, &#8220;2024 would go down as the best election year return ever,&#8221; said Ryan Detrick, the chief market strategist at Carson Research in a note.
&#8220;Going back 50 years, we found five other bull markets that had lasted at least this long and the shortest any of them lasted was five total years. Think of it like a cruise ship — once it gets moving, it can be quite hard to stop,&#8221; added Detrick
While the S&amp;P 500 index was up 25.96% on a year-to-date basis as of Dec. 23 close, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose by 25.82% in the same period.
The Dow Jones Industrial Average index, on the other hand, hit a record eight 1,000-point milestones this year. It started the year around the 37,000 level and breached the 45,000 level at the beginning of December. It took only seven trading days for the index to go from 44,000 to 45,000, the second fastest 1,000-point milestone ever. Following that the index also saw one of its longest 10-day losing streak, the first ever since 1974.
Dow was up 13.77% year-to-date as of the Dec. 23 close, whereas the SPDR Dow Jones Industrial Average ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) gained 13.74% in the same period.
The Nasdaq 100 index which includes all the &#8216;magnificent seven&#8217; stocks, unlike Dow, rose 29.98% year-to-date as Dec. 23 close. The ETF tracking the index, Fidelity NASDAQ Composite Index ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ONEQ#NASDAQ">ONEQ</a>) rose by 33.85% in the same period. Whereas, the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose by 29.88% in 2024.
The smallcap index Russell 2000 was up 11.16% over the year, while iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) was up 10.97% in the same period as of the Dec. 23 close.
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-1024x576.png" alt="" class="wp-image-705432" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
See Also: <a href="https://www.benzinga.com/24/12/42430296/carson-researchs-50-year-study-suggests-that-the-26-months-old-bull-market-is-far-from-over">Is The 26-Month Bull Market Over? Here Is What Carson Research&#8217;s 50-Year Old Study Tells Us</a>
<h3 class="wp-block-heading">U.S. Market Trumps The World</h3>
Among the developed economies, the S&amp;P 500 remains the best index with a 25.96% gain on a year-to-date basis, outperforming all the other developed market indices.
While the <a href="https://x.com/RyanDetrick/status/1871317802306707882">first </a>year of a new president&#8217;s term has usually been strong since 1897, the returns during year one of a second term haven&#8217;t been very good overall, said Detrick.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Returns during year one of a second term haven&#39;t been very good overall, but way better lately. Down 5 in a row, but now up 4 in a row. &#x1f914; <a href="https://t.co/aUrCbf22Gw">pic.twitter.com/aUrCbf22Gw</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1871320275129967103?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Developed Markets</td>
<td>Indices</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>United States</td>
<td>S&amp;P 500</td>
<td>25.96%</td>
</tr>
<tr>
<td>Germany</td>
<td>DAX</td>
<td>18.36%</td>
</tr>
<tr>
<td>Japan</td>
<td>Nikkei 225</td>
<td>17.27%</td>
</tr>
<tr>
<td>Hong Kong</td>
<td>Hang Seng</td>
<td>19.71%</td>
</tr>
<tr>
<td>Spain</td>
<td>IBEX 35</td>
<td>12.31%</td>
</tr>
<tr>
<td>United Kingdom</td>
<td>FTSE 100</td>
<td>4.94%</td>
</tr>
<tr>
<td>Switzerland</td>
<td>Swiss Market</td>
<td>2.85%</td>
</tr>
<tr>
<td>France</td>
<td>CAC 40</td>
<td>-3.43%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<h3 class="wp-block-heading">Communication, Consumer Discretionary, And Technology Lead Gains In 2024</h3>
Tracking the exchange-traded funds that track the major sectors in the U.S. market, communication services emerged as the top sector for the year, followed by consumer discretionary and technology. The information technology sector has the highest weight of 31.3% in the S&amp;P 500, followed by financials a t13.9%.
BlackRock said that they see technology companies&#8217; earnings performing well in 2025. &#8220;We are overweight as the AI theme and earnings growth broaden. Valuations for AI beneficiaries are supported by tech companies delivering on earnings.&#8221;
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Cyclical Sectors</td>
<td>ETFs</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Communication Services</td>
<td>Communication Services Select SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>35.97%</td>
</tr>
<tr>
<td>Consumer Discretionary</td>
<td>Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>)</td>
<td>27.21%</td>
</tr>
<tr>
<td>Technology</td>
<td>Technology Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>27.01%</td>
</tr>
<tr>
<td>Financials</td>
<td>Invesco S&amp;P 500 Equal Weight Financial ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPF#NYSE">RSPF</a>)</td>
<td>23.48%</td>
</tr>
<tr>
<td>Industrials</td>
<td>Vanguard Industrials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIS#NYSE">VIS</a>)</td>
<td>17.80%</td>
</tr>
<tr>
<td>Real Estate</td>
<td>Real Estate Select Sector SPDR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>0.27%</td>
</tr>
<tr>
<td>Materials</td>
<td>Materials Select Sector SPDR Fund (ARC: XLB)</td>
<td>-0.37%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-1024x576.png" alt="" class="wp-image-705439" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
See Also: <a href="https://www.benzinga.com/markets/equities/24/11/42383725/trump-administrations-deregulation-efforts-to-lift-energy-oil-and-gas-sectors-ai-frenzy-to-aid-faang-stocks-and-nvidia-says-fintech-insider">Trump&#8217;s Deregulation Efforts To Benefit Energy, Oil And Gas Sectors, While AI Frenzy Will Boost FAANG Stocks And Nvidia, Says Fintech Insider</a>
Among the defensive sectors, utilities emerged as a winner, whereas energy was an underperformer. Consumer staples, energy, and utilities take up 5.7%, 3.4%, and 2.5% weight, respectively in the S&amp;P 500 index.
As per Morgan Stanley, the energy sector faces a divided future. Trump's deregulation could benefit traditional energy, but the outlook for oil is uncertain due to potential oversupply and weak global demand, especially from China. In contrast, natural gas may see growth from strong European demand and increased domestic use for electrification and AI-powered data centers. The clean energy sector could face challenges, if Trump rollbacks Biden's 2022 Inflation Reduction Act tax credits. However, a full repeal seems unlikely due to the benefits for Republican states.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Defensive Sectors</td>
<td>ETFs</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Utilities</td>
<td>Vanguard Utilities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>)</td>
<td>18.23%</td>
</tr>
<tr>
<td>Consumer Staples</td>
<td>Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>)</td>
<td>10.04%</td>
</tr>
<tr>
<td>Healthcare</td>
<td>Vanguard Health Care ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>)</td>
<td>0.63%</td>
</tr>
<tr>
<td>Energy</td>
<td>The Energy Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>-0.96%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-1024x576.png" alt="" class="wp-image-705442" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h3 class="wp-block-heading">Top S&amp;P 500 Performers In 2024</h3>
Palantir was the top performer within the S&amp;P 500 index this year, as it zoomed 386.67% year-to-date, as of Dec. 23 close. Vistra and Nvidia followed Palantir to advance 269.82% and 189.95% in the same period.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>S&amp;P 500 Stocks</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>)</td>
<td>386.67%</td>
</tr>
<tr>
<td>Vistra Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>)</td>
<td>269.82%</td>
</tr>
<tr>
<td>NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>189.95%</td>
</tr>
<tr>
<td>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>)</td>
<td>162.80%</td>
</tr>
<tr>
<td>Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>)</td>
<td>148.04%</td>
</tr>
<tr>
<td>United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>)</td>
<td>144.30%</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>114.07%</td>
</tr>
<tr>
<td>Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>)</td>
<td>113.03%</td>
</tr>
<tr>
<td>Targa Resources Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRGP#NYSE">TRGP</a>)</td>
<td>106.40%</td>
</tr>
<tr>
<td>Howmet Aerospace Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HWM#NYSE">HWM</a>)</td>
<td>105.73%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-1024x576.png" alt="" class="wp-image-705446" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h3 class="wp-block-heading">U.S. Dollar Surges Over 6% In 2024</h3>
The Dollar index was up 6.72% year-to-date with a 52-week range of 100.1570 to 108.5410 per unit. If the Greenback can hold on to these gains, the currency would leave behind the second-best year since 2015.
The UDS&#8217;s demand has been rising due to the &#8220;Uncertainties arising from expected Trump's policies and hawkish comments from the Fed towards rate cycle,&#8221; said Kunal Sodhani, vice president of the global trading center at Shinhan Bank.
According to Franklin Templeton, &#8220;The Fed easing cycle will be a dominant factor for the USD. The two main comparisons we draw against the Fed cyclically, interest-rate-wise, are emerging markets, and Japan.&#8221;
WisdomTree Bloomberg US Dollar Bullish Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USDU#NYSE">USDU</a>) was up 13.24% on a year-to-date basis, as of Dec. 23 close, where as Invesco DB US Dollar Index Bullish Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) advanced by 7.21% in the same period.
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-1024x576.png" alt="" class="wp-image-705448" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next
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<li><a href="https://www.benzinga.com/24/12/42642834/market-breadth-turns-positive-after-a-rare-14-day-negative-streak-history-suggests-gains-ahead">Market Breadth Rebounds As Risk Appetite Makes A Comeback: This Analyst Predicts Gains Ahead After S&amp;P 500&#8217;s Record Negative Streak</a></li>
</ul>
Photo courtesy: Shutterstock

Analyst Color

Equities

Markets

AVGO

AXON

SPDR Dow Jones Industrial Average ETF Trust

NVDA

Fidelity NASDAQmposite Index Fund ETF-Tracking NASDAQmposite Index

ONEQ

PLTR

RSPF

TRGP

USDU

PowerShares DB US Dollar Index Bullish Fund

XLRE

S&P 500 Hits 57 All-Time Highs In Record-Breaking 2024: Magnificent 7 Drive 30% Of Nasdaq's Surge

Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) has raised the <a href="https://www.benzinga.com/markets/equities/24/09/40912814/amazon-told-its-staff-they-must-come-to-office-five-days-a-week-but-its-primary-healthcare-subsi">pay for hourly workers</a> at its U.S. fulfillment centers and transportation operations, the retail giant announced on Wednesday.
&#8220;Earlier today,&nbsp;I visited one of our sites near Salt Lake City to share some news with our teammates there—that we're making a significant new investment in pay and benefits for the hourly front-line employees across our fulfillment and transportation network,&#8221; Udit Madan, vice president of Amazon Worldwide Operations, wrote in the company&#8217;s newsletter.
He said Amazon&#8217;s front-line team will receive an hourly pay raise of $1.50 starting this month to bring the average base wage to $22 per hour. This will bring average total compensation, which includes benefits, to $29 per hour, he said.
&#8220;This is an increase of $3,000 a year on average for full-time employees who work a 40-hour week,&#8221; he wrote.
Read Also: <a href="https://www.benzinga.com/news/large-cap/24/09/40904271/whats-going-on-with-amazon-stock">What&#8217;s Going On With Amazon Stock?</a>
&#8220;And as one of the largest private employers in the country (we now have more than 800,000 people in these roles across the U.S.), this pay increase equals a total investment of more than $2.2 billion in our team.&#8221;
Amazon&#8217;s benefits include pre-paid college tuition, flexible working hours, a Prime membership, health insurance from the first day on the job and dental coverage.
&#8220;As I told the team this morning, this is just one way to say thank you for all they do,&#8221; Madan wrote.
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) and Google, which is owned by Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) offer <a href="https://www.benzinga.com/news/23/06/32679188/silicon-valleys-salary-showdown-unveiling-how-much-top-talent-at-apple-microsoft-and-google-get-paid-1">six-figure salaries</a> for managers and engineers.
Just over a year ago, the United Parcel Service, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>) and the Teamsters Union ratified a <a href="https://www.benzinga.com/news/large-cap/23/08/33995076/ups-and-teamsters-seal-the-deal-ensures-170-000-per-year-for-drivers-the-next-5-years">five-year contract</a> that ensures $170,000 per year for drivers over the next five years.
Price Action: Amazon gained 0.1% to $187.11 at the time of publication Wednesday.
Exchange-traded funds that hold the stock also trended upward.
<ul>
<li>ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>) gained 1.32%.</li>
<li>Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>) rose 0.72%.</li>
<li>Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) went up 0.81%.</li>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) gained 0.67%.</li>
<li>ProShares Long Online/Short Stores ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLIX#NYSE">CLIX</a>) ticked up 0.68%.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/09/40887347/amazon-to-cut-management-layers-end-work-from-home">Amazon To Cut Management Layers, End Work From Home</a></li>
</ul>
Photo: Shutterstock

AAPL

CLIX

FDIS

MSFT

Amazon Joins UPS In Raising Hourly Pay As Worker Compensation Trends Upward

Launched on 10/21/2013, the Fidelity MSCI Consumer Discretionary Index ETF (ARCA:FDIS) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Discretionary - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
<h2>Index Details</h2>
The fund is sponsored by Fidelity. It has amassed assets over $1.70 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. FDIS seeks to match the performance of the MSCI USA IMI Consumer Discretionary Index before fees and expenses.
The MSCI USA IMI Consumer Discretionary Index represents the performance of the consumer discretionary sector in the U.S. equity market.
<h2>Costs</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 0.58%.
<h2>Sector Exposure and Top Holdings</h2>
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund&#39;s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 100% of the portfolio.
Looking at individual holdings, Amazon.com Inc accounts for about 20.67% of total assets, followed by Tesla Inc and Home Depot Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hd#NYSE">HD</a>).
The top 10 holdings account for about 55.60% of total assets under management.
<h2>Performance and Risk</h2>
The ETF return is roughly 8.30% so far this year and it&#39;s up approximately 15.69% in the last one year (as of 09/17/2024). In that past 52-week period, it has traded between $64.24 and $86.11.
The ETF has a beta of 1.28 and standard deviation of 25.14% for the trailing three-year period, making it a medium risk choice in the space. With about 275 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Fidelity MSCI Consumer Discretionary Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FDIS is a sufficient option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Discretionary ETF (ARCA:VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (ARCA:XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.67 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $18.49 billion. VCR has an expense ratio of 0.10% and XLY charges 0.09%.
<a href="https://www.zacks.com/stock/news/2336918/should-you-invest-in-the-fidelity-msci-consumer-discretionary-index-etf-fdis?cid=CS-BENZ-FT-sector_etf-2336918">To read this article on Zacks.com click here.</a>

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Should You Invest in the Fidelity MSCI Consumer Discretionary Index ETF?

Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) CEO Andy Jassy&nbsp;is <a href="https://finance.yahoo.com/news/amazon-ceo-andy-jassy-says-213018283.html?fr=yhssrp_catchall">slashing management layers </a>and making employees to return to the office five days a week beginning in January at the world's largest online retailer and cloud-computing company founded by billionaire Jeff Bezos.
The changes, sent in a memo to employees on Monday, would address what company veterans see as unnecessary meetings and layers of approvals just to get things done, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-09-16/amazon-ceo-wants-workers-in-five-days-a-week-leaner-management?srnd=homepage-americas&amp;sref=TBDibEcD">reported</a>.
Each major entity within Amazon must increase the ratio of individual contributors to managers by 15% by the end of March 2025, Jassy said. Changes also include a bureaucracy tipline for employees to raise concerns about unnecessary processes.
Since the pandemic ended, Amazon had required workers to badge in at least three days a week, depending on their team needs. Amazon's new return to office policy will make exceptions for extenuating circumstances or previously approved remote jobs, Jassy said.
Read Also: <a href="https://www.benzinga.com/news/24/09/40877089/jeff-bezos-and-elon-musk-set-to-battle-for-dominance-in-the-sky-amazon-gears-up-to-launch-over-3-000">Jeff Bezos And Elon Musk Set To Battle For Dominance In The Sky: Amazon Gears Up To Launch Over 3,000 Low-Earth Orbit Satellites</a>
Most of Amazon's roughly 1.5 million employees worldwide are hourly employees who retrieve items and ship packages, people for whom remote work was never an option, but the company employs hundreds of thousands of office workers.
The changes may boost downtown foot traffic in cities where Amazon operates, such as Seattle; Bellevue, Washington; Arlington, Virginia; San Francisco; Austin, Texas; Boston; and Nashville, Tennessee.
The company has already tried to get workers back in the office, an effort that workers resisted by arguing the company was inflexible and failed to show data that working in person created better outcomes.
Exchange-traded funds that hold the stock also went down.
<ul>
<li>ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>) declined 0.24%.</li>
<li>Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>) fell 1.33%.</li>
<li>Vanguard Consumer Discretionary Index Fund ETF Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) slipped 0.16%.</li>
</ul>
Price Action: Amazon slipped 0.86% to close at $184.89 on Monday.
Read Now:
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<li><a href="https://www.benzinga.com/24/01/36488214/jeff-bezos-encouraged-his-brother-and-sister-to-invest-10-000-in-amazon-their-stake-grew-10-249-900">Jeff Bezos Encouraged His Brother And Sister To Invest $10,000 In Amazon — Their Stake Grew 10,249,900% And Now Potentially Is Worth Over $1 Billion</a></li>
</ul>
Photo: Shutterstock

Amazon To Cut Management Layers, End Work From Home

Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) may be regarded by consumers primarily as <a href="https://www.benzinga.com/news/24/09/40751108/whats-going-on-with-amazon-stock-friday">an e-commerce company</a>, given its blue delivery trucks are constantly dropping off packages at people&#8217;s doorsteps, but an analyst begs to differ.
&#8220;Our view is that eCommerce does NOT drive AMZN&#8217;s share price,&#8221; Needham analyst Laura Martin wrote in a note Thursday.
 &#8220;We believe AMZN is a Services company (ie, Advertising, Cloud, Prime Video, etc), NOT a products company, and eCommerce is all about products. Every quarter, we calculate a sum-of-the-parts valuation, and in most quarters we conclude that investors are paying almost nothing for AMZN&#8217;s eCommerce.&#8221;
She noted Amazon&#8217;s net revenue for this year&#8217;s second quarter grew 15% year-over-year to $86.4 billion, accounting for 58% of the company&#8217;s revenue of $148 billion in a three-month period and growing four timers faster than product sales revenue.
She said that quarterly product sales have stagnated at around $61 billion for every quarter since the first quarter of 2021, excluding the fourth quarter of every year.
Read Also: <a href="https://www.benzinga.com/real-estate/24/09/40814473/seller-of-79m-mansion-to-jeff-bezos-says-he-was-deceived-files-lawsuit-over-lost-millions-against-re">Seller Of $79M Mansion To Jeff Bezos Says He Was Deceived, Files Lawsuit Over Lost Millions Against Real Estate Firm That Brokered The Deal</a>
&#8220;AMZN&#8217;s services revs have been higher than its product sales for the past 11 quarters, and the gap is widening,&#8221; Martin wrote.
&#8220;We believe that eCommerce is where AMZN came from, but high margin businesses such as Advertising, Cloud, GenAI and other Services are where AMZN is going,&#8221; she added.
Martin pointed out that Amazon&#8217;s eCommerce business is very adaptable to meeting customer needs and is committed to constantly shortening delivery speeds with its &#8220;enormous&#8221; logistics network, but the company realizes significant costs in maintaining same-day delivery.
She attributed the higher costs to fewer items getting sent in a single box, running empty delivery trucks and requiring more gas and trips to pull off the same-day delivery.
&#8220;We believe the financials support the view that AMZN uses its eCommerce business as a loss-leader,&#8221; she said.
&#8220;This notion was supported by several experts who mentioned that AMZN&#8217;s retail strategy has historically centered around maintaining low margins for both 1P and 3P eCommerce business, and then adding higher-margin revenue streams such as Prime subscriptions and advertising, in order to improve profit margins.&#8221;
AMZN Price Action: Amazon gained 0.18% to $184.86 Thursday at publication.
Exchange traded funds that hold the stock mostly trended upwards on Thursday.
<ul>
<li>ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>) rose 0.12%</li>
<li>Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>) went up 0.16%</li>
<li>Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) gained 0.28%</li>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) edged up 0.24%</li>
<li>ProShares Long Online/Short Stores ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLIX#NYSE">CLIX</a>) slipped 0.38%</li>
</ul>
Read Now:
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<li><a href="https://www.benzinga.com/24/01/36488214/jeff-bezos-encouraged-his-brother-and-sister-to-invest-10-000-in-amazon-their-stake-grew-10-249-900">Jeff Bezos Encouraged His Brother And Sister To Invest $10,000 In Amazon — Their Stake Grew 10,249,900% And Now Potentially Is Worth Over $1 Billion</a></li>
</ul>
Photo: Shutterstock

Retail Sales

Amazon E-Commerce Is A 'Loss-Leader' … Its Real Money Is In 'Services,' Says Analyst

Launched on 06/12/2000, the iShares U.S. Consumer Discretionary ETF (ARCA:IYC) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Discretionary - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
<h2>Index Details</h2>
The fund is sponsored by Blackrock (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/blk#NYSE">BLK</a>). It has amassed assets over $1.06 billion, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. IYC seeks to match the performance of the Dow Jones U.S. Consumer Services Index before fees and expenses.
The Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index measures the performance of the consumer services sector of the U.S. equity market.
<h2>Costs</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.62%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 68.90% of the portfolio. Telecom and Consumer Staples round out the top three.
Looking at individual holdings, Amazon Com Inc accounts for about 13.24% of total assets, followed by Tesla Inc and Home Depot Inc.
The top 10 holdings account for about 50.07% of total assets under management.
<h2>Performance and Risk</h2>
So far this year, IYC has gained about 9.43%, and was up about 20.46% in the last one year (as of 08/29/2024). During this past 52-week period, the fund has traded between $63.10 and $84.94.
The ETF has a beta of 1.16 and standard deviation of 22.22% for the trailing three-year period, making it a medium risk choice in the space. With about 182 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
IShares U.S. Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYC is a reasonable option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Discretionary ETF (ARCA:VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (ARCA:XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.55 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $18.51 billion. VCR has an expense ratio of 0.10% and XLY charges 0.09%.
<a href="https://www.zacks.com/stock/news/2328673/should-you-invest-in-the-ishares-u-s-consumer-discretionary-etf-iyc?cid=CS-BENZ-FT-sector_etf-2328673">To read this article on Zacks.com click here.</a>

Mid Cap

iShares Trust Dow Jones USnsumer Services Sector Index Fund

Should You Invest in the iShares U.S. Consumer Discretionary ETF?

Amazon.com, Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Amazon Web Services (AWS) plans to <a href="https://www.benzinga.com/pressreleases/24/08/b40497938/aws-launches-infrastructure-region-in-malaysia">invest</a> $6.2 billion (about MYR 29.2 billion) in <a href="https://www.benzinga.com/topic/malaysia">Malaysia through 2038</a>.
The new AWS Region in Malaysia is expected to contribute around $12.1 billion (MYR 57.3 billion) to the country&#8217;s GDP and support over 3,500 full-time equivalent jobs annually through 2038.
Notable AWS customers in Malaysia include Bursa Malaysia, CelcomDigi, GX Bank Berhad, PayNet, Petroliam Nasional Berhad, the Department of Broadcasting Malaysia and Tenaga Nasional Berhad.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38783794/amazon-pours-1-3b-investment-into-french-operations-report" rel="noreferrer noopener">Amazon Pours ~$1.3B Investment Into French Operations: Report</a>
&#8220;The new AWS Region in Malaysia enables organizations across Asia Pacific to unlock the full potential of the world&#8217;s most extensive and reliable cloud, helping customers deploy advanced applications with a broad set of AWS technologies like AI and ML,&#8221; Prasad Kalyanaraman, vice president of Infrastructure Services at AWS, said. 
Tengku Zafrul, Malaysia&#8217;s Minister of Investment Trade &amp; Industry (MITI), called it &#8220;a significant step&#8221; toward building a sustainable economy and ensuring Malaysia &#8220;remains competitive on the global stage.&#8221;
Bursa Malaysia, the country&#8217;s national exchange, has launched the Centralized Sustainability Intelligence (CSI) platform on AWS to aid Malaysia&#8217;s shift towards a lower carbon economy.
Datuk Muhamad Umar Swift, CEO at Bursa Malaysia, said the collaboration with AWS gives Malaysian companies and their suppliers &#8220;an impetus to standardize ESG reporting and decarbonize their supply chain.&#8221; 
This year, AWS has been on an expansion spree. In May, AWS planned to invest billions in both the AWS European Sovereign <a href="https://www.benzinga.com/markets/equities/24/05/38843214/amazon-aws-to-pump-7-8b-into-german-cloud-expansion-details" target="_blank" rel="noreferrer noopener">Cloud in Germany through 2040</a> and <a href="https://www.benzinga.com/markets/asia/24/06/39284404/amazon-to-invest-billions-in-taiwan-cloud-infrastructure-expanding-aws-presence-in-asia" target="_blank" rel="noreferrer noopener">in Taiwan over the next 15 years</a>.
AWS had earlier disclosed plan to spend $9 billion on expanding its cloud services in Singapore and a $15 billion investment in Japan to build cloud capacity.
Investors can gain exposure to the stock via&nbsp;ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>) and Vanguard Consumer Discretion ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>).
Price Action: AMZN shares are up 0.39% at $180.82 premarket at the last check Wednesday.
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Amazon Web Services Commits Over $6B To Malaysia With New Cloud Region

As the <a href="https://www.benzinga.com/earnings">earnings season</a> unfolds, more businesses are sharing perspectives on consumer trends. 
According to a Bloomberg <a href="https://www.bloomberg.com/opinion/articles/2024-07-16/us-consumer-health-is-fine-shoppers-are-just-getting-pickier?sref=TBDibEcD">analysis</a>, retailers are frustrated over the lack of spending on the part of shoppers. And yet, retail sales soared by 1%<a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40393687/retail-sales-soar-in-july-weekly-jobless-claims-undercut-expectations-traders-lea"> month-over-month in July</a>.
The sharp rebound from stagnation in June surprised economists who expected an uptick of just 0.3%. The data also threw off analysts who expected consumers to pull back on spending <a href="https://www.benzinga.com/topic/inflation">due to stubborn inflation</a>.
Turns out, consumers are spending &#8212; they&#8217;re just picky <a href="https://www.benzinga.com/topic/retail">about where they shop</a>. 
For example, spending intentions for leisure and housing are on the rise, according <a href="https://www2.deloitte.com/us/en/insights/economy/consumer-pulse/state-of-the-us-consumer.html">to</a> Deloitte. Sectors like clothing, however, are experiencing low intention levels compared to 2021.
"Consumer spending has been muted this year due to volatile goods spending, with overall spending going up by only 0.3% since year-end 2023," said the report.
The University of Michigan&#8217;s monthly consumer sentiment index proclaimed <a href="https://www.benzinga.com/markets/equities/24/07/39750466/us-consumer-morale-dips-more-than-expected-in-july-sentiment-remains-stubbornly-subdued">July as the worst month</a> for consumers since November 2023. However,<a href="https://www.benzinga.com/news/econ-s/24/08/40419637/us-consumer-confidence-rebounds-in-august-expectations-are-subject-to-change-as-presidential-campaig"> sentiment picked up in August</a>.

<h2 class="wp-block-heading">What Companies Are Saying </h2>
Home Depot Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) felt the sting of <a href="https://www.benzinga.com/24/08/40381559/home-depot-ceo-says-inflation-keeps-eating-away-at-disposable-income-are-home-repairs-being-put-off">homeowners holding off on renovations until interest rates come down</a>. The company&#8217;s second-quarter comparable sales decreased 3.3%, with U.S. comparable sales down 3.6%, <a href="https://www.benzinga.com/news/earnings/24/08/40334855/home-depot-q2-earnings-customer-transactions-decline-cites-weaker-home-improvement-spending-but-rai">reflecting weaker consumer demand</a>.
Macy&#8217;s Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/M#NYSE">M</a>) also saw consumers turning away from more expensive items. Second-quarter sales hovered at around $4.94 billion — down 3.8% year over year.
Macy&#8217;s CEO Tony Spring <a href="https://www.cnbc.com/2024/08/21/macys-m-q2-2024-earnings.html">told</a> CNBC that "a softness, a carefulness, a delay in the conversion of purchasing&#8221; are to blame.
&#8220;Even the affluent consumer is not spending like they were a year ago,&#8221; he added.
Macy&#8217;s released mixed second-quarter results that <a href="https://www.benzinga.com//node/40484046">missed analyst consensus and forced it to lower its guidance</a>. 
Other retailers had better luck. 
TJX Companies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TJX#NYSE">TJX</a>) shares jumped by over 6% on Wednesday. The company, which owns TJ Maxx, Marshalls, HomeGoods and Sierra, among other brands, <a href="https://www.benzinga.com/news/earnings/24/08/40484279/tjx-companies-q2-earnings-strong-sales-higher-margins-invests-in-dubais-brands-for-less">posted a 4% increase in store sales</a>. 
The jump in sales was driven entirely by a net rise in customer transactions, said the company, which was surprised by the results and raised its guidance for next year. 
A sales uptick for TJX might mean consumers are choosing to direct their discretionary spending toward discount prices found in stores like TJ Maxx and Marshalls.
An earnings report from Ross Stores Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NASDAQ">ROST</a>), scheduled for Thursday, might confirm the trend. Analysts from Zachs expect the company to post revenues of $5.25 billion, representing a year-over-year increase of 6.3%.
Strong quarterly results from Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) took shares 9% higher after the company's <a href="https://www.benzinga.com/news/earnings/24/08/40391777/walmart-q2-earnings-e-commerce-and-advertising-businesses-fuel-revenue-and-profit-beat-hikes-annual">earnings results were posted Thursday</a>. 
Sales for the quarter totaled $169.34 billion, up 4.8% year-over-year, beating expectations and pushing the company to raise its guidance.
"So far, we aren&#8217;t experiencing a weaker consumer overall," said CEO C. Douglas McMillon. The retail exec also reported a deflationary trend in its U.S. store prices. Walmart shares <a href="https://www.benzinga.com//node/40486532">rose on Wednesday</a> in response to positive results from 
Walmart CFO John David Rainey said: &#8220;Everyone is looking for some piece of information that maybe indicates further weakness with our members and our customers, <a href="https://www.benzinga.com//node/40446780">we&#8217;re not seeing it</a>.&#8221; 
Rainey said his company is not immune to the volatility of the day, especially when considering the geopolitical backdrop. &#8220;Other economic data out there, as well as the state of affairs globally, would suggest that it&#8217;s prudent to remain appropriately cautious,&#8221; he said. 
Target Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) sales <a href="https://www.benzinga.com/news/earnings/24/08/40482203/target-q2-earnings-revenue-and-profit-beat-digital-sales-boost-annual-profit-outlook-hiked">were up by 2.7% and also beat market expectations</a>. CEO Brian Cornell noted improving trends across discretionary categories, most notably in apparel and beauty products.
Consumers have shown remarkable resilience in the face of multiple challenges over the last several years, and they remain resilient today, he said, adding:&nbsp;"Given the significant headwinds they faced with inflation over the last few years, consumers continue to focus on value as they work hard to manage their household budgets.&#8221;
Chief Commercial Officer Rick Gomez said that while economic data remains mixed, American families continue to deal with a lot but are still "willing and able to spend."&nbsp;
"Yes, they&#8217;re still being choiceful. Yes, they&#8217;re budget conscious. And yes, they&#8217;re hunting for deals and everyday value. But they&#8217;re also willing to shop when they find that right combination of fashion and newness at the right price. This was on full display in our second quarter results," said Gomez.
<h2 class="wp-block-heading">ETFs To Watch </h2>
<ul>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>), an ETF that follows the performance of major companies in industries such as retail, automobiles, consumer durables, apparel, hotels and restaurants, is up by 1.1% on Wednesday and down 1.3% in the last month.</li>
<li>Vanguard Consumer Discretionary Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) presents a similar performance, up 1.3% on Wednesday and down 0.5% in the last month.</li>
</ul>
Now read:
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<li><a href="https://www.benzinga.com//node/40492530">Fed Minutes Reveal &#8216;Plausible Case&#8217; For Interest Rate Cut As Policymakers Cheer Inflation Progress</a></li>
</ul>
Shutterstock image.

General

ROST

Is The Consumer OK? What We Know From Retailers About Spending In 2024

Americans are feeling optimistic about the economy given stabilizing inflation and shifting election sentiments. This is especially true as consumer sentiment rose in early August for the first time in five months. Rising consumer sentiment bodes well for household spending in the coming months. It is expected to have a positive impact on the consumer discretionary sector, which attracts a major portion of consumer spending.
Investors can tap the encouraging trend in the basket form through consumer discretionary ETFs like Consumer Discretionary Select Sector SPDR Fund (ARCA:XLY), Vanguard Consumer Discretionary ETF (ARCA:VCR), Fidelity MSCI Consumer Discretionary Index ETF (ARCA:FDIS), First Trust Consumer Discretionary AlphaDEX Fund (ARCA:FXD) and iShares U.S. Consumer Services ETF (ARCA:IYC). These funds have a Zacks ETF Rank #3 (Hold).
The latest University of Michigan consumer sentiment index climbed from 66.4 in July to 67.8, marking the highest reading of consumer sentiment since June. This has sparked strong optimism surrounding the economy and the stock market, which eased concerns about a cooling labor market in early August.
According to the survey, inflation expectations remained stable at 2.9% over the next year and 3% over the next five to 10 years. Consumers&#39; expectations of inflation over the next year remain at their lowest level since December 2020.
Most of the rise in confidence came from presidential election developments. Sentiment for Democrats rose 6% as Vice President Kamala Harris gained ground in public polling while sentiment for Republicans fell 5%. The survey showed that 41% of consumers believe Harris is the better candidate for the economy, while 38% said Trump is better.
Consumer Discretionary Select Sector SPDR Fund
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 52 securities in its basket, with key holdings in specialty retail, hotels, restaurants and leisure, broadline retail, and automobiles with a double-digit allocation each.
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $18.6 billion and an average daily volume of around 3 million shares. It charges 0.09% in expense ratio.
Vanguard Consumer Discretionary ETF
Vanguard Consumer Discretionary ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 302 stocks in its basket. In terms of industrial exposure, broadline retail, automobile manufacturers and restaurants occupy the top three spots.
Vanguard Consumer Discretionary ETF is the low-cost choice in the space, charging investors only 10 bps in annual fees while volume is good at nearly 61,000 shares a day. The fund has managed $5.4 billion in its asset base so far.
Fidelity MSCI Consumer Discretionary Index ETF
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 274 stocks in its basket. It has key holdings in broadline retail, specialty retail, hotels, restaurants and leisure, and automobiles.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.6 billion in its asset base while trading in a good volume of around 137,000 shares a day on average. It charges 8 bps in annual fees from investors.
First Trust Consumer Discretionary AlphaDEX Fund
First Trust Consumer Discretionary AlphaDEX Fund follows an AlphaDEX methodology and ranks stocks in the space by various growth and value factors, eliminating the bottom-ranked 25% of the stocks. This approach results in a basket of 120 stocks with retailers, travel and leisure, media&nbsp;&nbsp;&nbsp; and personal goods taking double-digit exposure each.
First Trust Consumer Discretionary AlphaDEX has an AUM of $1.5 billion and trades in a volume of 47,000 shares per day on average. It charges a higher 61 bps in annual fees.
iShares U.S. Consumer Services ETF
iShares U.S. Consumer Discretionary ETF offers exposure to U.S. companies that distribute food, drugs, general retail items and media by tracking the Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index. It holds 176 stocks in its basket, with key holdings in consumer discretionary, consumer services, media &amp; entertainment, consumer staples distribution &amp; retail, and autos &amp; components.
iShares U.S. Consumer Discretionary ETF has amassed $1 billion in its asset base and trades in a moderate volume of 123,000 shares a day on average. It charges 40 bps in annual fees from investors.
<a href="https://www.zacks.com/stock/news/2324514/etfs-to-tap-as-consumer-sentiment-improves?cid=CS-BENZ-FT-etf_news_and_commentary-2324514">To read this article on Zacks.com click here.</a>

First Trustnsumer Discretionary AlphaDEX Fund

ETFs to Tap as Consumer Sentiment Improves

Editor&#8217;s Note: The story has been updated to correct the error that job promises were pushed to 2038. As per Amazon, the original Memorandum Of Understanding stated 2038 as the commitment year/deadline
Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) has encountered delays in expanding its workforce at its <a href="https://www.benzinga.com/government/23/04/31803239/amazon-seeks-first-incentives-for-virginia-headquarters-report" target="_blank" rel="noreferrer noopener">Northern Virginia headquarters</a>, a project initially presented as a significant economic boost. 
The&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/10/35125190/is-amazons-new-hq-too-fancy-for-its-own-good" rel="noreferrer noopener">22-story towers</a>&nbsp;at HQ2, equipped with luxurious amenities, house 8,000 employees, departing from the frugality that defined Amazon under Jeff Bezos.&nbsp;
Elegant designs, team suites, and a visitor center at HQ2 depict an Amazon moving away from its origins of makeshift desks and self-service coffee.
Despite a commitment to adding 25,000 new jobs by the end of the decade, Amazon&#8217;s workforce in Arlington experienced a reduction last year, attributed to company-wide layoffs and a hiring slowdown.&nbsp;
Holly Sullivan, Amazon&#8217;s vice president of worldwide economic development, cited global hiring reductions as impacting the company&#8217;s growth projections for HQ2 but reassured that Amazon remains committed to its 25,000-job target by 2038 as per the Memorandum Of Understanding, the Washington Post <a href="https://www.washingtonpost.com/dc-md-va/2024/04/16/amazon-hq2-jobs-arlington-virginia/" target="_blank" rel="noreferrer noopener">reports</a>.
Amazon, which required employees to return to the office three days a week, opened two office towers in Crystal City with capacity for twice the current staff but has paused further construction.&nbsp;
Despite these challenges, Amazon continues to pursue its headquarters project as a long-term investment, with 1,000 positions currently open.&nbsp;
However, the reduction in job creation could decrease the financial incentives Amazon receives from Virginia based on the company&#8217;s fulfillment of its employment commitments.&nbsp;
State officials, who had offered up to $750 million in subsidies for the project, designed the incentives to require Amazon to maintain new jobs for at least five years.&nbsp;
Amazon&#8217;s recent hiring report suggests a smaller payout from Virginia than initially expected, reflecting the unforeseen challenges and adjustments facing the company and its HQ2 project.
<a target="_blank" href="https://www.benzinga.com/news/23/01/30517576/amazons-cloud-division-earmarks-35b-towards-virginia" rel="noreferrer noopener">Prior reports indicated</a>&nbsp;Amazon Web Services (AWS) plans to commit another $35 billion by 2040 to expanding data centers in Virginia, which would create 1,000 jobs.
Amazon stock gained over 78% in the last 12 months. Investors can gain exposure to the stock via&nbsp;SPDR Select Sector Fund &#8211; Consumer Discretionary&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and&nbsp;Vanguard Consumer Discretion ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38200796/amazon-phases-out-developer-incentives-embraces-ai-to-revitalize-alexas-competitive-edge" rel="noreferrer noopener">Amazon Phases Out Developer Incentives, Embraces AI to Revitalize Alexa&#8217;s Competitive Edge (Updated)</a>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Sundry Photography on Shutterstock

Amazon's Northern Virginia Dream Fades On Hiring Slowdown, Company Commits To 2038 Deadline (CORRECTED)

McDonald&#8217;s Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) reportedly plans to extend its $5 meal deal across most U.S. locations to attract cost-conscious diners.
Launched on June 25, this initiative aims to entice customers who have <a target="_blank" href="https://www.benzinga.com/news/24/06/39439346/why-are-mcdonald-shares-trading-higher-friday" rel="noreferrer noopener">cut back on fast food due to inflation.</a>
Approximately 93% of McDonald&#8217;s restaurants have committed to offering the bundle beyond the initial four-week window, with some locations planning to continue through August, reported <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-22/mcdonald-s-to-extend-5-meal-deal-citing-customer-traffic?srnd=phx-industries&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.
Early results show the meal deal is successfully drawing customers back to the restaurants, per the report.
McDonald&#8217;s Chief Marketing Officer Tariq Hassan and National Field President Myra Doria noted in a memo that increasing guest counts is crucial for sustained growth.
The company is also considering extending the meal deal further and extending hours of operation to meet demand during off-peak times.
The company aims to enhance its affordability strategies for the rest of the year, addressing consumer spending limitations due to shrinking disposable incomes.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39524167/mcdonalds-customers-prefer-chicken-over-plant-based-options-report" rel="noreferrer noopener">McDonald&#8217;s Customers Prefer Chicken Over Plant-Based Options: Report</a>
The company&#8217;s $5 meal deal includes a McDouble cheeseburger, small fries, four-piece chicken nuggets, and a small soft drink. The fast-food chain&#8217;s menu has seen historic price hikes of more than <a target="_blank" href="https://www.benzinga.com/news/24/06/39428015/mcdonalds-announces-5-value-meal-as-it-looks-to-win-back-customers-were-committed-to-winning-the-val" rel="noreferrer noopener">200% in some cases in the past decade.</a>
McDonald&#8217;s is set to announce its second-quarter <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">earnings on July 29. </a>The extended meal deal and other affordability measures are part of the company&#8217;s efforts to maintain customer traffic amid economic pressures.
In April, the company reported first-quarter FY24 sales growth of 4.6% year-on-year to <a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38520891/mcdonalds-bottomline-faces-the-heat-of-consumer-spending-cut-in-q1-shares-slide" rel="noreferrer noopener">$6.17 billion and an adjusted EPS of $2.70</a>.
McDonald&#8217;s stock has lost more than 12% in the last 12 months. Investors can gain exposure to the stock via Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>).
Price Action: MCD shares are trading higher by 0.33% at $258.13 at last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by nlinnlin on Shutterstock

Movers

What's Going On With Fast-Food Giant McDonald's Shares Today?

The online e-commerce behemoth Amazon&nbsp;kicked off its most-anticipated two-day Prime Day event. Prime Day sales rose almost 12% year over year in the first seven hours, per data from Momentum Commerce.
According to Numerator, the average household spent about $100 on Prime Day purchases as of noon New York time on Jul 16. The top-selling items included protein shakes, the Amazon Fire TV stick streaming device, sunscreen and Amazon&#39;s Happy Belly brand grocery items.
Investors can tap the opportune moment with the ETFs having a double-digit allocation to this online behemoth. These include ProShares Online Retail ETF (ARCA:ONLN), Fidelity MSCI Consumer Discretionary Index ETF (ARCA:FDIS), Vanguard Consumer Discretionary ETF (ARCA:VCR), Consumer Discretionary Select Sector SPDR Fund (ARCA:XLY) and VanEck Vectors Retail ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rth#NASDAQ">RTH</a>).
According to Adobe data, the 48-hour event is expected to rake in $14 billion in online sales, up 10.5% from the last year. Shoppers are expected to spend $7.1 billion on Amazon on Tuesday alone, up 11.3% from last year. Day 2 is expected to bring $6.9 billion in online sales, up 9.2% year over year. The biggest discount is expected on electronics at 22%, followed by 20% on clothing, 17% on home goods and furniture and 11% on sporting goods.
<h3>ETFs in Focus</h3>
ProShares Online Retail ETF
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 18 stocks in its basket. Amazon is the top firm, accounting for 23.4% of the portfolio. ProShares Online Retail ETF has amassed $101.8 million in its asset base and charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 274 stocks in its basket. Of these, Amazon takes the top spot with a 23.3% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.5 billion in its asset base and charges 8 bps in annual fees from investors. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Discretionary ETF
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 304 stocks in its basket. Of these, Amazon occupies the top position, with a 23.4% allocation. Broadline Retail takes the largest share at 25.5%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots. VCR charges investors 10 bps in annual fees. The product has managed $5.7 billion in its asset base and carries a Zacks ETF Rank #3 with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and the most popular product in this space, with AUM of nearly $20 billion and an average daily volume of 2.7 million shares. Holding 52 securities in its basket, Amazon takes the top spot with 22.5% of assets. Broadline retail, specialty retail, hotels, restaurants &amp; leisure, and automobiles are the top four sectors with double-digit exposure each. Consumer Discretionary Select Sector SPDR Fund charges 0.09% in expense ratio and has a Zacks ETF Rank #3 with a Medium risk outlook.
VanEck Vectors Retail ETF
VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with a 20.4% share. VanEck Vectors Retail ETF has amassed $213 million in its asset base and charges 35 bps in annual fees. It trades in trading volume of 5,000 shares per day on average and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2303589/5-etfs-to-profit-from-amazon-s-prime-day-event?cid=CS-BENZ-FT-etf_news_and_commentary-2303589">To read this article on Zacks.com click here.</a>

Events

Merrill Lynch Retail HOLDRS Trust due 12/31/41

5 ETFs to Profit From Amazon's Prime Day Event

Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) is under scrutiny by the U.S. Federal Trade Commission (FTC) for its recent hiring of top executives and researchers from AI startup Adept.
The FTC&#8217;s request for more details reflects concerns about how <a target="_blank" href="https://www.benzinga.com/topic/artificial-intelligence" rel="noreferrer noopener">AI-related deals</a> are structured and follows a broader review of partnerships between major tech companies and AI startups.
The informal inquiry, which has not previously been reported, focuses on Amazon&#8217;s announcement that Adept CEO David Luan and others will join Amazon, which will also license some of Adept&#8217;s technology, according to Reuters reports.
These inquiries do not necessarily lead to formal investigations or enforcement actions.
Amazon is working to catch up with rivals Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) in developing advanced language models capable of responding to complex prompts.
David Luan now leads Amazon&#8217;s &#8220;AGI Autonomy&#8221; team, composed of many former Adept employees, and reports to Rohit Prasad, head of the AGI team, according to Reuters.
Also Read: <a target="_blank" href="https://www.benzinga.com/top-stories/24/07/39776938/amazon-set-to-top-last-years-prime-day-results-due-to-early-deals-analysts-say" rel="noreferrer noopener">Amazon Set To Top Last Year&#8217;s Prime Day Results Due To Early Deals, Analysts Say</a>
Adept, founded in 2022, had raised over $400 million to train language models for enterprise clients but struggled to launch successful commercial products.
The FTC is also examining a similar move by Microsoft, which hired several leaders from another AI startup, Inflection AI, and agreed to pay a $650 million licensing fee.
The FTC&#8217;s broader investigation includes looking into investments and partnerships in the AI space, such as Amazon&#8217;s <a target="_blank" href="https://www.benzinga.com/news/24/03/37974682/amazon-pours-4b-into-ai-startup-challenging-google-and-openai-with-its-largest-external-investment-i" rel="noreferrer noopener">$4 billion investment</a> in AI startup Anthropic.
The regulator seeks to understand how these partnerships affect strategy, pricing, product access, and personnel decisions.
U.S. antitrust enforcers are concerned that Big Tech could leverage their advantages in AI to suppress smaller competitors.
The FTC and the Justice Department are prepared to investigate potential anti-competitive behavior involving major tech firms and AI companies, such as Microsoft, OpenAI, and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Reuters writes.
Amazon stock has gained more than 47% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Consumer&nbsp;Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>).
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39755563/amazon-expands-ai-shopping-assistant-rufus-to-all-us-customers-as-prime-day-approaches" target="_blank" rel="noreferrer noopener">Amazon Expands AI Shopping Assistant Rufus to All US Customers As Prime Day Approaches</a></li>
</ul>
Price Action: AMZN shares are trading higher by 0.81% at $194.29 at the last check on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Amazon Faces FTC Inquiry Over AI Talent Acquisition From Adept

Shares of Nike Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) are trading slightly <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">higher premarket today</a>. The sneaker giant has brought back a retired senior executive to manage its retail partnerships after experiencing strained relationships with sneaker sellers and a decline in sales.
Tom Peddie, who spent 30 years at Nike before retiring in 2020, has returned as vice president of marketplace partners, according to an internal memo obtained by Bloomberg.
Under the leadership of Chief Executive Officer John Donahoe, Nike has been working to restore its connections with retailers like Foot Locker Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FL#NYSE">FL</a>).
This move follows Nike&#8217;s strategy shift towards its own stores, e-commerce, and apps, which led to severed ties with many retail partners. Consequently, Nike&#8217;s stock has plummeted by 31% this year.
&#8220;As we continue to focus and improve capabilities in our wholesale business, I am confident that Tom will bring both vision and bold leadership to accelerate the Marketplace strategy,&#8221; said Craig William, Nike&#8217;s president of geographies and marketplace, in the memo.
Peddie held various senior management roles during his tenure at Nike. His last position was vice president and general manager of North America. His return to Nike was set for June 24.
Recently, the company said it expects first-quarter revenue to be down approximately 10% and a high single-digit decline in <a target="_blank" href="https://www.benzinga.com/news/24/07/39579541/whats-going-on-with-nikes-stock" rel="noreferrer noopener">sales for the first half of the year.</a>
The decline in the guidance revenue is driven by aggressive management of classic footwear lines, ongoing challenges in digital sales, subdued wholesale orders, a softer outlook in Greater China and several timing-related factors.
Nike reported fourth-quarter revenue of $12.6 billion, down 2% year-over-year, missing the analyst <a target="_blank" href="https://www.benzinga.com/news/earnings/24/06/39536852/nike-q4-earnings-highlights-revenue-miss-eps-beat-taking-our-near-term-challenges-head-on" rel="noreferrer noopener">consensus estimate of $12.91 billion.</a>
Nike stock has lost more than 30% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) and Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>).
Price Action: NKE shares are trading higher by 0.48% at $73.40 in premarket at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Pexels/ Grailify

Management

What's Going On With Sneaker Giant Nike's Shares Today?

Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) is reportedly preparing to launch a new section on its shopping site, targeting overseas consumers with affordable items shipped directly from warehouses in China.
This strategic move is aimed to compete with bargain sites like Temu and Shein, reported Reuters.
The upcoming marketplace will feature unbranded fashion, home goods, and daily necessities, promising delivery times of 9 to 11 days.
In a recent closed-door meeting, Amazon informed Chinese sellers that it would start signing up merchants this summer and begin accepting inventory in the fall, per the report, which cited the Information.
Sellers on this new platform can select their product offerings, set their own prices, and produce in small batches to test market demand.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39516038/amazon-cloud-conference-disrupted-protestors-demand-company-end-1-2b-contract-with-israel-shared-by" rel="noreferrer noopener">Amazon Cloud Conference Disrupted, Protestors Demand Company End $1.2B Contract With Israel Shared By AWS Parent And Google</a>
&#8220;We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience,&#8221; an Amazon spokesperson said, per the report.
It remains unclear if Amazon will utilize a U.S. trade provision that exempts individual packages valued at less than $800 from customs duties.
Both Shein, which is expanding ahead of a public offering, and Temu, owned by PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>), benefit from this expedited clearance process for direct-to-consumer shipments.
Amazon stock has gained 50% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Consumer&nbsp;Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>).
Price Action: AMZN shares closed higher by 3.90% at $193.61 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39470396/amazon-set-to-challenge-chatgpt-parent-openai-with-new-ai-service-metis-report" target="_blank" rel="noreferrer noopener">Amazon Set To Challenge ChatGPT-Parent OpenAI With New AI Service &#8216;Metis&#8217;: Report</a>
Photo via Shutterstock

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