Dollar General, Kroger Buck Broader Rally On Trump Tariff Freeze: Retail Opts To Stay Bullish

Investors were left confused on Wednesday after shares of discount retailer Dollar General Corp (DG) ended in the red despite the broader market posting exceptional gains.

President Donald Trump announced that the new U.S. tariffs will be paused for 90 days for most of the affected nations.

The move supercharged stocks of Amazon (AMZN) to Delta Airlines (DAL), while the broader market recorded its best gains in post-WWII history, according to CNBC.

On the other hand, Dollar General fell nearly 2% and was the biggest loser on the S&P 500 (SPX). Grocery chain Kroger Co. (KR) joined the anomaly, with its shares slipping 0.8% as well.

That contrasted moves even in peer retailer store stocks. Walmart (WMT), Best Buy (BBY), Costco (COST), Target (TGT), and Macy's (M) gained between 9.6% and 18.5%.

Although there was no clear reason for the diversion, it is important to note that the two stocks gained in recent weeks based on expectations that consumers would continue spending on groceries and value items.

On Stocktwits, retail sentiment for Dollar General remained in the 'extremely bullish' category, while for Kroger, it changed to 'bullish' from 'extremely bullish.' Message volume was high for both stocks.

Many users were frustrated over DG's inconsistent move with the market.  

However, one user noted that DG was set up for consolidation after recent gains, adding that with a slight decline and support at $85, "it's a very good sign for this stock over the next few months.” 

“We'll explode tomorrow, but closing in the red on a day like today is still very confusing,” said another.

DG shares are up 13.5% year to date and KR's up 7.7%.

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