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Who's Holding Up In Retail?


Retail is acting well today, having taken an unrelenting pounding since roughly Labor Day.


Hello from New York where I'm trying to stay cognizant of the fact that, eventually, the market will stop paying those shooting against hope by selling every green open. Just not today. Other things I'm watching as we stagger towards a long weekend:

  • Under Armour (UA) is going to need a blood-wicking fabric to clean itself after the selling today and yesterday. Yesterday, it was the rumor that UA was going to be ramping up the marketing spend to roll out new products. After the bell, UA made the rumor true, taking down near-term numbers in the process. Hell hath no fury like a cult-brand stock with slowing growth prospects. If you need to play a broken story (and you don't), I'd lean towards Crocs (CROX).

  • Speaking of shattered hopes and dreams, Sprint (S) is today's example of this being a very, very bad time to issue bad news.

  • In theory days like this should be good for movie theater sales and films like Disney's (DIS) National Treasure 2 (hey, it's been a while since I plugged my book). Even for the most hyper trader this was a one-trade day. Specifically, "sell the green open and hit the movies."

  • Retail is acting well today, having taken an unrelenting pounding since roughly Labor Day. Looking to play? How about (yes, I'm saying it) Wal-Mart (WMT). The stock acts well and the company has taken back a good chunk of mojo from Target (TGT).

  • Video game console and software sales surged 28% in December. 2007 sales were $18 bln. Top games were Halo 3 and Activision's (ATVI) Call of Duty 4. Wii was first, then Xbox 360, then PS3. But growth is expected to cool. I'm staying long ATVI. Watch Microsoft (MSFT) next week; judging by Intel (INTC), MisterSoftie is going to need some gaming love to push the stock higher.


No positions in stocks mentioned.

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