SPY Slips, U.S. Retail Sales Drop Unexpected 0.6%

The SPDR S&P 500 ETF Trust (SPY) is under pressure after U.S. retail sales fell 0.6% in July. This decline missed the consensus forecast of a 0.1% increase. The spending contraction signals potential headwinds for the economy and S&P 500 corporate earnings.

The disappointing data follows a record high for the S&P 500 and SPY on the previous day. That rally was driven by softer-than-expected inflation figures that eased concerns about further Federal Reserve rate hikes.

GuruFocus analysis suggests SPY is trading at a modest overvaluation based on its GF Value™. However, retail sentiment for the ETF recently shifted to bullish according to Stocktwits.