The stock market endured another session of heavy selling Friday as sluggish earnings reports from former top stocks Alphabet (GOOGL) and Amazon.com (AMZN) fueled negative sentiment. The weakness came one day after a bullish up session for the indexes, led by several industry groups in the retail sector.
The resilience of retail stocks has been noteworthy as major stock indexes remain stuck in correction mode. Sure enough, when indexes rallied sharply on Thursday, specialty retailers, internet-based retailers and home furnishings chains led the charge, with collective gains in the groups ranging from 4% to 6%.
The retail sector certainly has a healthy economy working in its favor. Early Friday, the first reading on Q3 gross domestic product came in better than expected at 3.5%, helped by a 4% increase in consumer spending. Monthly job gains have averaged more than 200,000 this year, and wage growth has picked up a bit. Tax cuts have also helped boost consumer spending.
Top Stocks In Retail
Headed into Friday, five top stocks in the specialty retail group owned Composite Ratings of 95 or higher. Leaderboard name Ulta Beauty (ULTA) has been a pillar of strength as it trades near its 50-day moving average. At…