Today the market was lifted after Home Depot beat the market estimates by 4 cents. With such an excellent result, the market started the day gaining more than 50 points putting aside fiscal cliff worries. But while Home Depot has gain more than 200 points, Wall Street has succumb to its worries, and now has barely up by 5 points.
Tomorrow the retailers might not be strong enough to lift the market from such a negative sentiment. Abercrombie & Fitch Co, PetSmart Inc and Staples Inc will be releasing their earnings. It will take much more for the bulls to put the market in positive motion. Perhaps tomorrow Retail Sales data would help.
Some of big retailers will face the market on Thursday. Target (TGT), Wal-Mart (WMT), Gap (GPS), Sears (SHLD), Dollar Tree (DLTR), Ross Stores (ROST), The Children’s Place (PLCE), Williams-Sonoma (WSM) and perhaps Target and Wal-Mart would have a better chance to move the market up. Target is expected to report 0.78 EPS and Wal-Mart 1.07 EPS.
Wal-Mart like Home Depot, is in an interesting moment in the chart. It has been one of those stock that have ride the first wave of recovery very well, with its share price increasing by more than 40% since September last year. After such an excellent run, analyst have the stock recommendation to buy on 3 from a scale of 1-10. Its recent high has been the highest since 1978. A pull back could be just due even if the stock meet the market estimates and predict good trading conditions for the next year.Sorry, there are no polls available at the moment.