{"id":22474,"date":"2017-02-18T05:23:37","date_gmt":"2017-02-18T05:23:37","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=22474"},"modified":"2017-02-18T05:24:05","modified_gmt":"2017-02-18T05:24:05","slug":"stocks-highs-investors-eye-consumer-results","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/stocks-highs-investors-eye-consumer-results.html","title":{"rendered":"With stocks at highs, investors eye consumer results"},"content":{"rendered":"

\n\tWith stocks at highs, investors eye consumer results<\/span><\/span><\/strong><\/span>
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\n\tWith stocks at highs, investors eye consumer results:-<\/strong> U.S. stock investors may look to a host of results from consumer-facing companies including Wal-Mart Stores Inc (WMT.N) next week for signs on whether the recent market rally has more room to run.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe consumer names are among the last major companies of the S&P 500 earnings season to report, but the results will also be watched for a read on spending as well as for commentary from executives on President Donald Trump's proposal to tax imports.<\/span><\/span><\/span>\n<\/p>\n

\n\tRetail executives, some of whom met with Trump this week, have argued such a tax will raise consumer prices and hurt their businesses.<\/span><\/span><\/span>\n<\/p>\n

\n\tBesides Wal-Mart, Macy's (M.N) and Home Depot Inc (HD.N) are among the heavyweights due to report next week.<\/span><\/span><\/span>\n<\/p>\n

\n\tInvestors also will keep a close eye on housing-related data to gauge if a recent rise in consumer spending and inflation data is translating into higher home prices and a pick-up in home sales, market strategists said.<\/span><\/span><\/span>\n<\/p>\n

\n\tWall Street ended the week on a high note, with all three major indexes registering record highs and the Dow reaching a seventh straight record close. [.N\/C]<\/span><\/span><\/span>\n<\/p>\n

\n\tInvestors were watching consumer names this week as Trump met with chief executives of Target Corp (TGT.N), Best Buy Co Inc (BBY.N) and six other major retailers.<\/span><\/span><\/span>\n<\/p>\n

\n\tNext week, investors may be looking for more clues about the impact of Trump's proposals on retailers, with particular focus on Wal-Mart, JJ Kinahan, chief market strategist at TD Ameritrade in Chicago said.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Maybe not so much what their earnings say as much as what their conference call will say about some of the president's proposals around border taxes and immigration," he said.<\/span><\/span><\/span>\n<\/p>\n

\n\tResults from some of the largest consumer-facing companies will also provide a read on whether improving consumer sentiment is reflected in actual results, said Steve Chiavarone, portfolio manager at Federated Investors.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Does sentiment continue to work higher and eventually pull up actual results or can sentiment only take you so far until you have some follow-through in the real data? Those are the things that will be on our minds," he said.<\/span><\/span><\/span>\n<\/p>\n

\n\tResults from small-cap retail companies will also be pored over as these companies have struggled from a profitability standpoint, said Steven DeSanctis, equity strategist at Jefferies.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Though retail sales numbers have been good, profitability for a lot of the retailers has not been good," he said.<\/span><\/span><\/span>\n<\/p>\n

\n\t"That's going to be a big telltale sign for us. We're overweight discretionary, thinking that was the cheapest group out there, and it still is the cheapest but… if the E drops out the PE, you run into a problem there," he said, referring to price-to-earnings for the group.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-usa-stocks-weekahead-idUSKBN15W2F7<\/span><\/span><\/span><\/p>\n

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