Most major retailers report April same-store sales on Thursday. According to Thomson Financial, they are expected to rise 2.5 percent from a year ago.
Warehouse stores appear most likely to experience gains with JP Morgan analyst Charles Grom anticipating strong year to date momentum from Costco and BJ’s .
Also discounters such as Wal-Mart are likely to continue to benefit from these trends, he says, as consumers hunt for bargains, pinched by a rising cost of living, a weak housing market and tightening credit.
The stimulus checks didn’t arrive in time for April, says Jeff Macke. I’m expecting negative headlines that generate sell-offs. If I’m right, I recommend buying Wal-Mart on the dip because May should be strong.