Investing.com – Both Macy’s and Kohl’s beat consensus with second quarter earnings on Thursday, sending shares more than 15% higher, while investor’s looked ahead to Friday’s release of retail sales.
Macy’s beat consensus by 11 cents per share with sales also topping expectations. Shares (NYSE:M) jumped 16%.
Kohl’s also managed to best forecasts by 19 cents per share, while net sales settled just above estimates. Shares (NYSE:KSS) soared more than 15%.
Competitors also benefitted from bullish sentiment with JC Penney Company Inc Holding (NYSE:JCP) rising 6% or Sears Holdings Corporation (NASDAQ:SHLD) up 4%.
Nordstrom (NYSE:JWN) shot up more than 7% prior to releasing its own earnings Thursday after the close.
Buyers were crowding into retail with the S&P Retail Select Industry up more than 2% as market participants looked ahead to a key data point that will measure the strength of the sector at the beginning of the third quarter.
The Commerce Department will publish data on July retail sales at 12:30GMT, or 08:30AM ET, Friday. The consensus forecast is that the report will show retail sales rose 0.4% last month, after increasing 0.6% in June. Core sales are forecast to inch up 0.2%, after gaining 0.7% a month earlier.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy. Consumer spending accounts for as much as 70% of U.S. economic growth.