Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon, today is Thursday, December 26th, and I'm your host, Kim Khan.

Our top story so far. Reports continue to indicate that holiday spending hit a record level this year.

However,

the calendar rolling out past Christmas Day means the end of the peak shopping season and the

beginning of the busiest time of the year for returns. The National Retail Federation

forecasts that returns are expected to amount to 17% of all U.S. merchandise sales, totaling

$890 billion in return goods. That level would

market increase from the return rate of about 15% of total sales in 2023. The level of returns

in the retail industry has exploded since the pandemic, when consumers became comfortable buying

merchandise in more than one size or one color due to the ease and low costs of returning unwanted items.

By some estimates, close to two-thirds of consumers now buy multiple sizes or colors, some of which they send back, a practice known as bracketing.

A higher percentage of consumers will also buy an item for a specific event and then return it for a store, credit, or refund.

The phenomenon has become so prominent that experts have taken to calling January as return

urinary due to the high volume of returns process during the month. With behaviors like

bracketing and rising return rates putting strain on traditional systems, retailers need to rethink

reverse logistics, warned Happy Return CEO David Sobey.

Retailers are adapting to the challenges of return your area by implementing various

strategies, such as tightening return policies, offering refunds without requiring item

returns, and exploring buyback programs to keep products in circulation.

On the economic front, weekly initial jobless claims

dipped to $219,000 from $220,000 lower than the $223,000 expected. And bond yields continue

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