Holiday Momentum Pushes Retail, Leisure Stocks Past S&P 500 – Tesla, Garmin, Tapestry Stand Out

As the holiday shopping season begins to ramp up, the Consumer Discretionary sector is making waves. It is outperforming the broader S&P 500 Index. The sector posted an impressive 11.02% gain in November, significantly outpacing the S&P 500’s 3.42% increase.

The Consumer Discretionary Select Sector SPDR ETF XLY serves as a barometer of companies in the consumer discretionary sector in the U.S. The S&P 500 Index, which tracks the board market, is mostly widely tracked by the SPDR S&P 500 ETF SPY, the iShares Core S&P 500 ETF IVV, and the Vanguard S&P 500 ETF VOO.

Driving the sector's strength are notable names like Tesla Inc TSLA, Garmin Ltd GRMN, and Tapestry Inc TPR, all of which posted massive gains in November, signaling robust consumer spending trends and holiday optimism.

Tesla: Powering Ahead With A 33% Surge

With a dominant 17.51% weight in the Consumer Discretionary index, Elon Musk‘s Tesla remains a force to be reckoned with, soaring 33% in November. The electric vehicle giant’s continued innovation and market leadership in EVs, paired with strong investor sentiment, have propelled it to the front of the pack.

Whether it’s the new vehicle models or expanded global reach, Tesla’s meteoric rise is hard to ignore.

Read Also: A Year After Tesla’s First Cybertruck Deliveries, The Truck Has A Long Way To Go To Meet Elon Musk’s Goals

Garmin: Navigating To New Heights

Garmin Ltd. also made waves, with a solid 27.86% jump. Despite its smaller index weight of 0.82%, Garmin’s strong performance is a testament to the brand's loyal customer base and continued innovation in GPS technology and fitness wearables.

As consumers look to track their health, fitness, and travel plans this season, Garmin is in the driver's seat.

Tapestry: A Fashionable Trendsetter

Tapestry, the parent company of luxury brands like Coach and Kate Spade, saw a robust 27.02% gain in November, securing its place as a leading performer. The company's strong product offerings and growing consumer demand for luxury goods are positioning it for a stellar holiday season.

With a 0.36% weight in the index, Tapestry is a notable outlier, proving that even in challenging times, consumers are willing to splurge on high-quality fashion.

Other Standouts

It's not just the big names; a slew of other Consumer Discretionary stocks also posted solid gains in November. Booking Holdings Inc BKNG was up 17.49% and Expedia Group Inc EXPE gained 16.22%, benefiting from increased travel demand as holiday plans ramp up.

Cruise operators Royal Caribbean Group RCL, up 16.16%, and Carnival Corp CCL, up 15.07%, surged amid optimism around travel bookings. Outdoor apparel maker Deckers Outdoor Corp DECK, rising 15.58%, and Domino's Pizza Inc DPZ, up 15.26%, also stood out as consumers embraced leisure and discretionary spending.

The strong showing of the Consumer Discretionary sector signals that Americans are feeling confident about their spending habits heading into the holiday season.

With top performers like Tesla, Garmin, and Tapestry leading the charge, the sector is on track to continue its upward momentum. As the holidays approach, investors may want to keep a close eye on these names as they navigate the season of giving.

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