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Rating Retail ETFs

By Don Dion

About this article:
PowerShares Dynamic Retail was flat on light trading heading into the close after several retailers reported better-than-expected results. No. 2 holding TJX reported a June same-store sales gain of 4% as investors turn to discount retailers. The news lifted shares close to 3%. Other retailers were not so lucky with their same-store sales. Target reported a 6.2% sales drop but also said cost-cutting would help it hit earnings targets. Shares of TGT are up more than 3%. Abercrombie & Fitch reported a 32% decline in June same-store sales, sending its shares off by more than 4%. Another way to play the sector is through the SPDR Retail ETF. PMR underperformed XRT from the March lows because PMR had held up much better during the market crash. A quick check of momentum shows that PMR is still losing long-term positive momentum, but investors...

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