Retail stocks continue to surge on news that the US and China agreed to slash tariffs for 90 days, offering relief ahead of key selling periods for retailers.

Yahoo Finance Senior Reporter Brooke DiPalma joins Market Domination Overtime to break down how the tariff pause is impacting major retailers like Dicks Sporting Goods (DKS), Amazon (AMZN), and Target (TGT).

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

Video Transcript

00:00 Speaker A

Retail stocks flying high as the US and China agreed to slash tariffs for 90 days. The latest tariff move, potentially saving the year for retailers. Yahoo finances Brooke DiPalma joins us now with the very latest, Brooke.

00:15 Brooke DiPalma

Good afternoon to you both. This was certainly a sigh, a huge sigh of relief for retailers, especially as this is the time when they really prepare for their critical back-to-school season, as well as the holiday season. One analyst even telling me that this may have just saved the Christmas season. Now that they can bring inventory and get product in ahead of those two crucial selling periods this year. Now, this 90 day pause will reduce those UF US tariffs on Chinese goods to 30% from 145%. And this went from what one analyst calls an impossible situation to a much more manageable, yet challenging situation. And lots of uh companies that have discretionary goods are the one that we were seeing the major moves in today during Monday's uh trading session. That includes companies like uh Amazon, Target, and Best Buy. Best Buy, as you can see there has 55% of its exposure to China sourcing. Those were some companies that saw the highest moves today because they're largely these discretionary oriented retailers. And they're the ones that have that decent exposure to China. Others also making moves today include uh companies like Dollar Tree, Five Below, and Wayfair, seeing major moves today up more than 20% for five below, as well as Wayfair largely largely because investors are optimistic that this will then be a sigh of relief, especially because of that exposure to China. Now, in terms of what this means for price increases, if you take a company like Best Buy, uh now assuming that the manufacturers absorb about 50% of tariffs, we'll still see about a 3 to 5% increase to offset the effect here. One analyst calling that yet again, more manageable. Two stocks that companies that rather analysts still really like, Walmart and Costco, still expected to do well in this environment given their scale. Also consumers turning to low price products in this environment. And also largely groceries still, as they really focus down on essential needs.  Related Videos

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