Two Ways To Play: Holiday Shopping Season Starts With a Whimper
Strengthen your portfolio in good times and bad.
This year, Black Friday may take on new meaning for US retailers. Traditionally the day when profits turn from red to black, retailers may struggle through the first 24 hours of what's expected to be the worst holiday shopping season in 6 years, according to Bloomberg.
A Gallup poll shows that individuals are likely to spend an average of $616 on presents this season, down nearly 30% from a year earlier. But stores are fighting declining consumer confidence by opening doors at midnight and marking down items as much as 70%.
For more on the retail sector, see Ticker Shock: J. Crew, Dillards Post Disappointing Results.
From the Bull Pen: The sentiment in retail is pretty bad, but these expectations may already be priced in. Consider Amazon (AMZN) to the upside. Bulls might be able to catch it on a pullback towards $40.
From the Bear Cave: A short opportunity might exist in Simon Property Group (SPG) into the $55 level, which marks the top of its downtrend from September. Buy stops can be set above that level.
Quick Check Around the World
Asian trading closed with the Hang Seng 2.48%, Nikkei 1.66%, Sensex 0.73%, Taiwan 0.15% and Shanghai -2.44%.
Glancing towards Europe, we see the CAC -1.56%, DAX -1.51%, FTSE -0.31%
As of 8:15 a.m. EST, S&P futures are trading -7 to 879, and Nasdaq futures are -13 to 1181.
A Look At Commodities
Crude oil is trading -0.72 to 53.72. Gold is +1.9 to 810.40. Silver is -0.100 to 10.120 and copper is -5.550 to 161.25.
The dollar index is +0.992 to 86.520.
On the Radar
Have a great weekend.
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