This week early Fiscal Cliff concerns, could take a back step as the market will focus on retail data. Some of the US biggest retailers will be reporting their earnings this week. Retailers could prove essential for the current down trend that Wall Street is going through. Any positive surprise will help the bullish traders and investor to get something else from this week.
On Tuesday Home Depot, Michael Kors, Saks, TJX Cos., Dick’s Sporting Goods will face the market. The most important of them all, will be the Home Depot results, which is expected to report 0.7 of EPS.
Home Depot stores, which are full-service, warehouse-style stores, sells an assortment of building materials, home improvement and lawn and garden products. The Home Depot stores serve three primary customer groups: do-it-yourself (D-I-Y) customers, do-it-for-me (D-I-F-M) customers and professional customers.
Home Depot share price has double in the last year, and its earning release might not be what the market will be looking for. In fact, it could just push the market down. Its chart shows sign of been overbought and perhaps tomorrow could be decided what level (support/resistance) the share price will break through.
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Most analyst have the stock recommendation to buy, but from an scale of 1-10 the average recommendation is 2. That isn’t convincing enough, specially at the current level in which the share price is trading. Even though the company could top analyst estimates, the stock looks rather bearish and most probably, would retreat to levels around the $50-$53 mark.