Tag Archive | TGT

Three ETFs Influenced By Black Friday

With Thanksgiving right around the corner, the nation’s single busiest shopping day is about to unleash, and whether or not the retail sector will get a boost this holiday season is ambiguous, however, the Retail HOLDRs (RTH), the iShares Dow Jones US Consumer Services (IYC) and the SPDR S&P Select Retail (XRT) are likely to be influenced regardless of the outcome.

A poll conducted by the National Retail Federation shows that up to 138 million shoppers may visit the nation’s shopping malls over the Black Friday weekend, an increase of nearly 3 percent from last year.  Many are expected to flock to the blockbuster bargains that are being offered by retailer like Wal-Mart (WMT), Target (TGT) and Best Buy (BB).  Wal-Mart is expected to offer DVDs for as little as $1.96, Blue-Ray Disc Movies for $10 and some kitchen appliances for under $3, while Target is following a similar path and is also expected to offer a 40 inch LCD HDTV for under $300 and Best Buy is advertising netbook computers starting at under $150.    Read More…

Three ETFs To Play Amazon And Remain Diversified

As technology companies continue to generate cash and hoard it, some, like Amazon (AMZN) are looking at acquiring others to broaden their current offerings paving the road to prosperity for the Internet HOLDRs (HHH) the Retail HOLDRs (RTH) and the PowerShares NASDAQ Internet (PNQI).

According to insiders, Amazon, which was sitting on cash and short-term securities of $5.9 billion at the end of September, is currently nearing an agreement to buy Quidsi Inc., owner of Diapers.com and Soap.com.    Furthermore, the Seattle based online retailer recently bought Woot.com, a site that offers a daily discounted item and has agreed to purchase BuyVIP, a fashion site, which will expand its presence in Europe.  Read More…

Four ETFs Driven By Consumer Spending

The US economy grew at a faster than expected rate in the third quarter of this year, buoyed much by an increase in consumer spending, however, is still not growing at a rate to generate new jobs.  Despite this, a ray of light may shine on sectors driven by consumer spending enabling the Consumer Discretionary Select Sector SPDR (XLY), the Vanguard Consumer Discretionary (VCR), the PowerShares Dynamic Consumer Discretionary (PEZ) and the Retail HOLDRs (RTH) to reap the benefits.

According to the Commerce Department, consumer spending, this accounts for nearly 70 percent of US GDP, increased by 2.4 percent annually during the third quarter of this year.  Furthermore, retail sales rose in each of the three months in the third quarter with a further detail indicating that this rise is broad based.  Read More…

Four Income Producing Stocks Worth A Look

In a time when many investors have been fleeing to safe-haven assets and enhanced uncertainty in the health of the global economy continues to prevail, dividend rich companies remain an attractive choice to add a steady source of income. 

As compared to last year, dividends and share buybacks in corporate America are making their return after both slumped last year as company’s hoarded cash and were unsure of the health of the world’s financial system.  In 2010, 135 companies have raised their dividends and some major players include equipment maker Caterpillar (CAT) and retailers Target (TGT) and American Eagle (AEO). 

In general, raising dividends illustrates that a company is in good financial shape and is well positioned for future growth.  As for Caterpillar, the company’s earnings have been improving due to upbeat comments about the U.S. economy from Fed Chairman Ben Bernanke as well as favorable Chinese export data indicating global economic recovery and increased demand for Caterpillar’s goods.  Read More…

3 Reasons Retailers May Face Uphill Battle

 Although many retailers reported first-quarter earnings results which beat Wall Street’s expectations, an ambiguous recovery in consumer spending and confidence will likely put a strain on near term growth and profitability.

On one hand, retail giant Target (TGT) recently announced that in the month May its same-store sales jumped 1.3%, a hair ahead of expectations and witnessed a rise in credit card sales, suggesting consumers are more willing to extend themselves.  On the other hand, clothing retailers, which are a good indicator of consumer discretionary spending, Abercrombie & Fitch (ANF) and Hot Topic (HOTT), reported sales that fell short of expectations.  Additionally, warehouse giant Costco Wholesale (COST) recently saw an uptick in sales of food, an essential item, and a decrease in the volume of televisions sold in May.  Read More…

4 Retailers Reaping Benefits Of Consumer Spending

As momentum of a broader economic expansion picks up and the labor market starts to stabilize, middle-class consumers are starting to shun away from low price alternatives beaming a ray of sunshine on higher-end retailers. 

This trend is evident in the most recent earnings releases of some of the largest U.S. retailers.  Wal-Mart (WMT), the world’s largest retailer and beneficiary of new customers trading down at the heart of the Great Recession, recently reported sluggish first quarter sales.  In fact, first-quarter sales for stores open more than one year at Wal-Mart’s domestic locations fell for the fourth consecutive quarter and forced the company to paint a bleak picture for the second quarter.  One driver behind this trend is that Wal-Mart is seeing a decline in foot traffic as middle-class consumers are feeling a bit more optimistic and turning to higher-end retailers.

It appears that these consumers have turned to the likes of Saks Inc. (SKS), Nordstrom (JWN), Target (TGT) and Home Depot (HD), as they have increased their expenditures.  Saks recently reported increases in revenues of 6.9%, increased margins and its first quarterly increase in sales at stores open for at least year over the last two years.    In fact, this recent boost in consumer confidence has led the New York based retailer to increase its forecast for sales at stores open at least one year.  Saks closed at $8.99 on Wednesday and is up 119% over the last year.  Read More…

Retail ETFs May Have Muddy Path

By Kevin Grewal

The retail sector posted its third consecutive monthly sales gain as department stores posted sales revenues which beat analyst expectations; however, the road ahead still remains bumpy. 

Department store giant Macys Inc. (M) as well as discount store Target (TGT), both reaped the benefits of an increase in traffic and a jump in the average amount spent by consumers, pushing increases in sales by 4% and 2.4%, respectively.    Additionally, Wal-Mart (WMT) stated that it is expecting to pay back its investors by increasing its annual dividend by 11%. 

Increases in consumer spending, and hence retail sales, have been linked to an expected increase in average hourly earnings and average hours worked, giving a boost to disposable income.  Additionally, some sector experts suggest that an increase was inevitable due to such poor sales figures in the month before.  Read More…

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