Dumping Retail Stocks a No-Brainer
According to CBS MarketWatch, yesterday was a day when “dumping retail stocks seemed like a no-brainer for many investors.” The S&P Retail Index fell two percent in trading as investors pulled back over fears about the economy, war and oil prices.
Supermarket company shares were the hardest hit in the day’s trading. Kroger’s announcement (stating the already known) that Wal-Mart was cutting into its food sales gave investors the excuse they needed to bail out of the sector. Kroger’s share price was off 15 cents at the end of trading.
Kroger’s admission did not help Wal-Mart’s stock performance. Shares of the Bentonville behemoth were down 1.3 percent on the day.
Moderator’s Comment: Will consumers increase, decrease
or keep the same their spending for the Thanksgiving – New Year holiday season?
How will what consumers buy differ (if at all) from year’s past?
The CBS MarketWatch article included the following question.
“If people didn’t buy back-to-school clothes for their children, who are an
inch taller with pant bottoms hitting their ankles, what makes you think they’ll
be gift-giving at Christmas?”
Our answer: by Christmas, these same kids will be two
inches taller and buying new clothes will be unavoidable. Games and gadgets
might take a hit, however, as consumers shop for necessities. [George
Anderson – Moderator]