The laggard retailers are catching bids and I have to wonder is that because they are so far out of whack with the winners? Or is it because rates are going lower and stocks like Macy's (M) and Kohl's (KSS) yield too much to avoid.
It's not easy to figure out how a stock catches a bid that's been hated the way these out-of-favor retailers are.
Macy's stock is so troubling to me because I find the remodeled Herald Square whimsical and fun. But others that I visit are simply not important in an era where if you aren't important we're not going.
Kohl's is so difficult. It's been a long time since I have seen a CEO written off as a player as quickly as Michelle Gass, the new CEO of Kohl's has been. She had a couple of weak months and that was all she wrote.
We know that overall, almost 7,000 stores have closed this year so far. The main reasons why they close, though, has to do with debt.
Macy's has sold stores to bring down debt dramatically. Kohl's, which is an Action Alerts PLUS holding, has a very strong balance sheet.
Do you need to sell Walmart or Target? Nope, they are still, in my view, well behind the market.