Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Archive for the ‘retail stocks’ Category

Spending Remains an Issue;
My Advice on Retail Investing

By | September 19, 2011

The fact that consumer spending has not tanked in spite of unemployment being at over nine percent and expected to stay around this level through 2012, and continued weakness in housing is encouraging.

Retail Stocks: Showing Some Improvement

By | August 15, 2011

I must admit the fact that consumers continue to spend despite any strong or sustained job growth and continued weakness in housing is encouraging. With consumer spending accounting for two-thirds of GDP, retail sales will eventually be stronger when the jobs and housing areas improve, albeit it will likely take over a year.

Retail Stocks: Faring Well
Despite Jobs and Housing

By | June 30, 2011

So far, even without strong job growth and with continued weakness in housing, consumers continue to spend, which is helping to drive the economic renewal, albeit sluggishly. This is positive and clearly encouraging once the jobs and housing areas improve. The Fed realizes this.

Retail Sales: Why They’re
Still a Big Sore Spot

By | June 15, 2011

Stocks surged on June 14 after the release of the May Retail Sales reading. The buying on the news would make you think it was a strong reading; but, in reality, the headline number fell 0.2% in May. Investors apparently were excited that it was not as bad as the negative 0.7% reading. Ex-auto, the reading was better than expected at 0.3%, versus the estimate of 0.2%.

Discount Retailer Stocks: Why They’re Tops

By | May 13, 2011

Everyone knows that consumer spending drives the economy and gross domestic product (GDP) growth. The headline Retail Sales reading for April jumped 0.5%, which was slightly below the estimate of 0.6% and down from an upwardly revised 0.9% in March. Excluding the auto portion, Retail Sales increased a slightly better than expected 0.6%, although this is lower than the upwardly revised 1.2% in March.

On the plus side, consumers are spending, but the lack of consistency is troublesome. And, given that gasoline prices are high, it reduces the disposable income that consumers have to spend on goods and services. You may not buy that DVD player you had been eyeing. This may not sound like a big deal, but think about it this way: not buying that DVD player has a trickle-down effect as far as spending goes and negatively impacts total spending.

Financial Reports

What You Need to Know
About Retail Stocks Now

By | April 28, 2011

The readings over the past four months are encouraging and we need to see this continue. The major hurdles are the continued high foreclosures and short sales in housing, along with declining home prices, so there are still reasons to be concerned. Also consider that a key driver of the housing market is jobs. We need jobs and security in order to give buyers confidence to assume a mortgage and not worry about jobs and missing payments. We are seeing some improvements in the jobs area.

Retail Stocks: Why I’m So Picky About Them

By | March 28, 2011

I’m extremely picky when looking at the retail sector. In fact, the majority of investment newsletters suggest avoiding retail stocks. And while I’m not totally in agreement with that view, I would be more selective with stock picking in the retail sector.

Why Discount Retail Stocks Are Best

By | March 11, 2011

Looking at retail? Want the sure-bet plays? My investment advice and best stock advice to you would be to stick with the leading discount bellwether retail stocks, such as Wal-Mart Stores, Inc. (NYSE/WMT) and Costco Wholesale Corporation (NASDAQ/COST).

Costco delivered $348 million, or $0.79 per diluted share, in its fiscal second quarter, up from $299 million in the comparative fiscal second quarter in 2010.

Luxury Retail Stocks: Why
I Like This One the Best

By | March 7, 2011

Two important facts in these changing economic times:

Fact number one: The higher-end crowd is making money again. The economy has improved, Wall Street bonuses are back in vogue. Luxury buyers are loosening their purse strings once more.

Why Retail Stocks Continue to Be Risky

By | February 25, 2011

The majority of investment newsletters do not like retail stocks. I’m not totally in agreement with that view, but I would be more selective with stock picking in the retail sector. Retail sales in the U.S. are estimated to surge to $389.65 billion in March from $344.24 billion in January, according to the Financial Forecast Center. Yet, if you go forward a few months, retail sales are predicted to fall to $343.09 billion by September 2011. So, let's take a look at what's going on with retail stocks and the economic forces that affect them.The majority of investment newsletters do not like retail stocks. I’m not totally in agreement with that view, but I would be more selective with stock picking in the retail sector. Retail sales in the U.S. are estimated to surge to $389.65 billion in March from $344.24 billion in January, according to the Financial Forecast Center. Yet, if you go forward a few months, retail sales are predicted to fall … Read More

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