Friends
We mentioned yesterday that we were going to get earnings reports from several retailers this week. Well, today’s results were mixed with both Kohl’s and Home Deport delivering disappointing results while TJX (TJ Maxx, Marshalls, and HomeGoods stores) delivered a report that pleased investors. We mentioned that many retailers had been experiencing a good year with regards to the performance of their shares and Home Depot was a good example of that. For the year, the home improvement store had seen its shares climb more than 40%, so it’s not surprising that the earnings disappointment triggered selling.
By the close, the Dow Jones Industrial Average (weighed down by the Home Depot) was down 102 points to finish the day at 27,934. The S&P 500 was down 1 point to close at 3,120. Gold was up a fraction to trade at $1,472 per ounce, while oil was down $1.80 to trade at $55.25 per barrel WTI.
We’ll get a look at Target’s earnings tomorrow. It still appears that the consumer is strong, but there are surely winners and losers with regards to where the consumer is spending money. And, as we mentioned, many of these stocks have had good years (not the box stores like Macy’s, Sears or Nordstrom, or even Kohl’s for that matter), so anything less than hitting the ball out of the ballpark will likely cause the shares to falter. Last week Walmart released a fantastic earnings report and the shares actually slumped after an initial pop. We’ll let you know how the rest of the week plays out for the retailers.
Have a nice evening everyone.
