Retail Concerns Slow Rally
Concerns that retail earnings and same store sales might be on the light side are being born out, at least initial numbers.
Men's Wearhouse cut its forecast for third quarter profits, citing "continued softening in traffic trends."
American Eagle saw a decrease of 5% in September comparable store sales, citing lower traffic and unseasonably warm weather.
Separately, restauranteur Ruby Tuesday also reported first quarter earnings in line with forecasts that had been lowered several weeks ago, but they cut their full year forecast as well.
Traders had to deal with several negatives today:
- The Boeing delay of the 787 Dreamliner dropped Boeing 3%; other aerospace-related stocks like Honeywell were also weak but rallied late in the dayEnergy stocks were weak as Chevron and Valero lowered earnings estimates, though these stocks rallied back late in the day as oil ralliedThe financial rally that was entering its fourth week petered out
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