US retail stocks rise after Democrats sweep Congress

By Reuters News

** Consumer Discretionary index .SPLRCD up 5%, leads gains in the S&P 500, after Democrats seized control of the Senate and House in the midterm elections

** Shares of big box retailers Walmart WMT.O, Costco COST.O, Target TGT.N up between 3% and 5%, Best Buy BBY.N, Macy's M.N up 7% each

** Dollar Tree DLTR.O up 10%, Dollar General DG.N up 6%

** Consumer goods companies have struggled with higher costs of packaging and transport as a fallout from the US war in Iran, which has pushed oil prices higher

** High gas prices have also pressured consumer spending

** Oil prices slipped 9% on Wednesday after President Donald Trump's Republican Party lost control of Congress in midterm elections

** "Consumers have had to make difficult budget choices after gasoline prices stayed elevated for so long. If investors are beginning to sniff out some relief at the pump, that effectively frees up discretionary spending power," said Brian Jacobsen, chief economic strategist at Annex Wealth Management

** Cruise operators Carnival CCL.N and Norwegian Cruise Line Holdings NCLH.N up about 6%, Royal Caribbean RCL.N up ~6%

** Sportswear makers Nike NKE.N, Lululemon LULU.O up 6% each

** Toymakers Mattel MAT.O, Hasbro HAS.O up ~3% each

** As of last close, S&P 500 Consumer Discretionary index was down 0.46% YTD

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