The XRT, which tracks the biggest names in retail, is coming off its worst month in more than a decade after falling roughly 13% in May. But the sector showed some signs of life on Tuesday, gaining almost 3% and posting its best day in about five months.
While some investors may see this as a sign that it’s safe to start shopping again in this space, Miller Tabak’s Matt Maley says not so fast. Based on the historical correlation between the stock market and consumer confidence, Maley argues consumer confidence may be about to dip, which could hit the retail space hard… CNBC