Second tier revival? That's what it looks like today when you see companies like Newell (NWL) and Capri (CPRI) skyrocket. A rally in a Macy's (M) or a Kohl's (KSS) or a Gap (GPS) means that the Fed is going to allow the economy to keep expanding to the point that it might even include these companies that have been considered to be written off because they aren't able to handle the tariffs or because they are in moribund malls.
This is good news for all those who felt that there is no hope, something that does seem to be the case, for example, when a company like Estee Lauder (EL) reports that the U.S. is its weakest market.
This potential turn of events is terrific because retail is one of two pressure points in the economy, the other being the possibility that Boeing (BA) has to shut its 737 max production line.
A destruction of the mall for the holidays and a Boeing shutdown would be hard for even this economy to take.
So let's salute a Fed that's not putting the brakes on. It may be allowing some companies that were going to have a tough time this winter to thrive, another sign that this is a new Fed, one committed to growth for all.