Retail Won't Stay Down Easily

 | Feb 06, 2014 | 2:54 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

kss

,

ann

,

cost

,

lb

,

tjx

,

m

,

rost

,

bby

,

sbux

,

gme

,

tgt

Kohl's (KSS) tells you something. So does Ann (ANN), and so do Costco (COST) and L Brands (LB). These say, wait a second, things are bad, they just aren't that bad.

And that's real important.

Retail led us down. It's where this whole selloff started. The selloff was deserved.

The holiday season simply didn't cut it. The weather was bad. The calendar was bad. Everything was bad.

The stocks were killed. Justifiably.

Now, though, we have to ask ourselves, has the negativity gotten too great? Were we too hard on the group, when even the weather didn't crush these companies?

Take a look at Ross Stores (ROST) and TJX (TJX). Those stocks have been terrible, and that is particularly galling for TJX, which has executed perfectly.

We know that Macy's (M) did well, but then they started hammering that one too! Now it is coming back, and I think it can easily rally another couple of points if we get anything half decent on the employment number tomorrow.

It would be totally realistic to expect that after the bloodletting in GameStop (GME) and Best Buy (BBY) and Target (TGT) -- the ones that were annihilated -- we could get that bounce.

Oh, and it isn't just retail. The restaurant stocks have been roaring. Starbucks (SBUX) had gotten laid to waste. It's springing back. Panera Bread (PNRA), where I am worried, is rebounding, and McDonald's (MCD) is now back to where it was when it reported a crummy quarter.

Maybe these stocks will give up their gains tomorrow on a too-weak employment number, but I think it is too late to be negative now.

Columnist Conversations

I'm eyeing possible support in this one....writing about this tonight! View Chart &raq...
It was a quiet start to the week, in as much as the broader market was concerned. With only three trading day...
Market closes flat as oil & commodities take hit today on back of stronger dollar...something that could c...
Latest PAYX/IHS Small Business Jobs Index released today...Mountain region and Texas metro continue to lead th...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.