Mixed Signals from US Consumer Stocks Amid Sales Tax Holidays

US consumer stocks posted moderate gains on Tuesday despite a mixed reading from McDonald's and other retailers. The Consumer Discretionary Select Sector SPDR ETF and Consumer Staples Select Sector SPDR ETF both rose by 0.2%. However, this growth may be influenced by sales tax holidays in some states.

McDonald's reported slower US comparable-sales growth in its second-quarter revenue report. The company cited a 'challenging' consumer environment as the reason for the decline. In contrast, Redbook, a retail sales tracker, showed an 8.7% year-over-year increase in same-store sales for the week ended August 1.

The 8.7% gain in same-store sales is partly attributed to sales tax holidays in Arkansas, New Mexico, Tennessee, and West Virginia. These holidays can temporarily boost sales by providing a 'short-lived price cut' at checkout, but they do not necessarily create long-term demand.