Is The US Consumer Is Finally Done?

The US retail sector took a significant hit in the final week of earnings season, with many retailers seeing double-digit declines due to weak earnings and poor guidance. This led to a major underperformance of the Retail ETF, as highlighted by Goldman consumer specialist, Scott Feiler. He pointed out the rapid deterioration in consumer credit, increased theft affecting margins, and incorrect positioning by Goldman’s trading desk as key drivers of the weakness. Additionally, the resumption of student loan payments in October is expected to further impact national brands as it affects a significant cohort of their customer base.