My Wife Spent How Much This Black Friday???
I couldn’t believe my eyes when the girls walked in the house…
It was the day after Thanksgiving, and I was just sitting down to relax after a long day of decorating.
That’s when the front door flung open in a hurry.
In walked my wife and daughters with countless shopping bags under their arms — as if they’ve never heard of taking two trips.
Nordstrom, Gap, Ulta Beauty, Nike, Express, Target… You name the store, and the girls in my family probably shopped there that day.
I couldn’t believe how many things they bought!
But as it turns out, they weren’t the only ones spending BIG this Black Friday…
BOOM Goes the Consumer
For months here at The Daily Edge we’ve talked about why the consumer is so important to the current bull market.
In case you missed it, consumers account for nearly 70% of economic activity here in the U.S., which is why keeping an eye on unofficial holidays like Black Friday are so important.
Confident consumers are a good sign for the state of our economy, and an indication that our bull market can continue.
And boy did the last few days prove that consumers are confident…
According to Adobe Analytics, Black Friday brick-and-mortar sales were up 4.2% over last year. And average order value was $168, a new record for Black Friday, up 5.9% on a year ago.
But the real story was online sales…
Consumers spent a whopping $7.4 billion via computers, tablets and smartphones this Black Friday. That’s $1.2 billion more than was spent on the same day in 2018.
And the spending spree isn’t over…
Today is Cyber Monday, where e-commerce sites get their shot at the action.
According to the same Adobe Analytics report, U.S. consumers are expected to spend another $9.4 billion just today, which should equate to somewhere around $29 billion in total spending this holiday weekend.
Talk about a confident consumer!
It’s All About the Wealth Effect
This holiday season is shaping up to be a merry occasion for consumers.
A strong job market along with an increasing portion of the population moving back into the workforce has left more shoppers with discretionary spending money.
It also helps that interest rates are still exceptionally low (making it easier for consumers to finance big ticket items, leaving room in the budget for holiday spending). And for consumers who also own their own homes, a strong real estate market has pushed home values higher, making it easier to refinance and pull cash from home equity.
All of these items are working together to create a great shopping environment for 2019.
So as we continue on this holiday season, I recommend you stay invested in this stock market, and even look to add stocks set to benefit from today’s strong consumer.
Because like I said… it’s not just my family spending big this holiday season!
Now let’s get to the other “Must Know” stories to start your week…
Happy Cyber Monday — Today is Cyber Monday, historically the best day of the year to get great deals from online retailers. According to an Adobe Analytics report, e-commerce companies are expected to generate $9.4 billion in sales just today.
But it’s not just Amazon that’s raking in the dollars. Rising e-commerce players like Walmart, Target, Kohl’s and Best Buy are all slashing prices to take advantage of the annual holiday splurging.
New Tariffs — President Trump is reinstating tariffs on steel and aluminum from Argentina and Brazil after criticizing the two countries for devaluing their currencies to the detriment of U.S. farmers. Remember, a weaker currency makes that country’s goods and services more attractive to foreign buyers. So Brazil and Argentina’s move to devalue their currency is making their crops more attractive to buyers like China, which ultimately hurts U.S. farmers.
U.S. Economic Check-Up — The first Friday of the month is coming up. And you know what that means… The jobs report is due out from the U.S. Labor Department! Economic “check-ups” like this are important because it gives investors an up-to-date reading on the state of the U.S. economy. Right now, economists expect 188,000 jobs were added last month.
Earnings on Deck — On Tuesday, Workday and Salesforce report earnings. On Wednesday, RBC, Campbell’s Soup Co., Restoration Hardware, Slack and Five Below report earnings. And on Thursday, Dollar General, Ulta Beauty, Kroger, TD Bank, Tiffany & Co., Michael’s, Zoom, Cloudera, Signet Jewelers and American Outdoor Brands report earnings.
Black Friday Sales Surge — In case you skipped ahead, the numbers are starting to roll in, and sales during the year’s most popular shopping weekend have clearly surpassed last year’s historic mark.
According to Adobe Analytics, Black Friday brick-and-mortar sales were up 4.2% over last year. And Average Order Value was $168, a new record for Black Friday, up 5.9% on a year ago. This proves the state of today’s consumer is STRONG!
That’s all from me today. Have a great week!
Here’s to growing and protecting your wealth!