Looking Forward and Remembering

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key takeaways

  • retail mixed message
  • Next week’s economic news in focus
  • Key Levels and Volatility
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The earnings season story was arguably the mixed bag we saw across retailers. target
TGT
and walmart
wmt
Kicked things off by scaring the markets with their earnings and outlook. Both companies paused for concerns that the economy could be headed for a recession. However, high-end retailers such as Nordstrom
JWN
And Macy’s presented a lot of positive news, possibly generating more questions than answers for the state of the economy. Last night we again saw some mixed messages with Gap stores and their margins shrinking despite Costco beating sales estimates.

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The retail sector seems to be a tale of two cities at the moment. Genuine retailers and those selling more trendy-type clothing are struggling. However, retailers appealed to the shopper with a slightly higher income and outperformed. We’ll put that theory to the test next week when wears Lululemon, a high-end athletic apparel retailer reports.

As earnings fade into the back mirror, next week’s attention will turn to a slate of economic data, the granddaddy of them all, headlined Friday’s employment report. Markets are looking for 310,000 jobs growth and the unemployment rate to remain stable at 3.6%. Moving on to Friday’s report, we’ll hear from the Fed’s Christopher Wallace on Monday, followed by a lot of data spread throughout the week that should provide a good idea of ​​how fair the economy is.

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For retail investors, I think there are a few things to keep an eye on. First, can the 4000 level be possible in the S&P 500? We can build a base on these levels, but next week’s data can test that level. Second, despite the week’s rally so far, the VIX is still trading higher and trading around 1.5x its historical average. A number that continues higher is suggesting the potential for more trading volatility.

In the meantime, let us all enjoy a worthy long weekend and most importantly take a moment to thank and remember those who have made the ultimate sacrifice to serve our country.

For educational purposes only, TastyTrade, Inc. Commentary.

Credit: www.forbes.com /

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