Three Months ‘Til Christmas
Holiday sales could be as weak as they were during the recession of 2002, according to a CNBC snap survey. It’s too early to shop, but it isn’t too early to trade the Christmas season. Who will be the Christmas winners amid such dismal forecasts?
Margaret Brennan, CNBC’s chief retail correspondent, says the expectations are that consumer electronics will drive demand again this holiday season.
But it won’t just be on the high-end, she says. While discount retailers like Target (TGT) and Wal-Mart (WMT) have been performing poorly as of late, they have still seen high demand for electronics. Both retailers had strong back-to-school season, which is generally a good indicator of how they will perform going into the holidays, Brennan says. She also reports that retail accessories like handbags and shoes show signs of strength ahead of the season.
Jeff Macke agrees, saying he liked Coach (COH) as a way to get ahead of Christmas.
Similarly, Guy Adami recommends Saks (SKS) for a “wealth trade” as well as a trade on the weaker U.S. dollar.
Investors should be alright if they stick with high-end retailers, Karen Finerman says, which don’t seem to get bogged down by a weak economy.
Pete Najarian reiterates his call on Under Armour (UA), saying sports apparel is “red hot.”
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Trader disclosure: On Sept. 25, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (AAPL), (VCLK); Finerman’s Firm Owns S&P 500 Puts, Russell 2000 Puts; Finerman’s Firm and Finerman Own (HD); Finerman Owns (NMX), (NYX), (TGT), (VCLK), (WMT)