Is the US consumer regaining its confidence? In a story by Reuters, grocery store chain Kroger
(KR) said shoppers are starting to buy national brands again, instead of cheaper generic brands.
Meanwhile, Best Buy
(BBY) also said it’s seeing sales trends improve and store traffic stabilize, but customers are still stuck toward lower-priced items.
But the trends described by these retail chains are largely in-line with the type of sluggish growth that many economists and the Federal Reserve expect.
Possibly most revealing were comments made by Wal-Mart
(WMT) Chief Executive Mike Duke, who said recently that customers remained cautious and were shunning even lower-quality “throw-away” items.
For more on retail, see Professor Kristin Graham’s Why Best Buy Could Be a Bargain
. From the Bull Pen
: Professor Graham makes a compelling case on Best Buy. Investors playing it can start an initial position here. A sell stop can be set below $37, near the current 50-day moving average. From the Bear Cave
: Bears are keeping an eye on Kroger. The stock gapped down big because of missed earnings earlier this week. A rally back to that level ($21.70) could provide one with a downside opportunity. A tight buy stop can be set above that level. Quick Check Around the World
Asian trading closed with the Nikkei
1.68%, India 0.20%, Hang Seng
2.02%, and Taiwan
Across the pond, we see the FTSE
As of 8:20 a.m. EST, S&P Futures
are trading +1.50 to 1064.75 and Nasdaq futures
are -2.000 to 1715.75. A Look at Commodities
Over in commodities, crude oil
is -0.23 to 72.28 while gold
is -1.90 to 1018.00 this morning. Silver
is -0.45 to 17.39 and copper
-3.450 to 288.60.
The dollar index
is +0.0650 to 76.5250. On the Radar
08:30 Building Permits (570k cons.)
08:30 Housing Starts (588k cons.)
08:30 Initial Claims
08:30 Continuing Claims
10:00 Philadelphia Fed Click here
for the full trading radar.
Happy Thirsty Thursday! Good luck!
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.