Two Ways To Play: Retail Madness
Strengthen your portfolio in good times and bad.
The Commerce Department said purchases jumped 1% last month. Economists were expecting sales to increase 0.5%. Furthermore, April's figure was revised upwards to a 0.4% gain, which was originally reported to decline 0.2%.
Breaking the numbers down, sales increased all around except for miscellaneous retailers. Auto sales and parts stores increased 0.3% after falling 2.1% in April. Excluding autos, sales jumped 1.2%, also above the median forecast of a 0.7% increase.
For more, See Professor Kevin Depew's Five Things You Need To Know.
From the Bull Pen: Bulls continue to like Wal-Mart (WMT), The stock definitely benefited from the tax rebate effect, but with its pricing power, bulls might still feel comfortable heading into the second half.
From the Bear Cave: The bears are skeptical of today's performance in other retailers. A downside play might exist in clothing retailers like J.C. Penney (JCP) and Limited (LTD) as inflationary pressures continue to weigh on consumers.
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