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A Few Retail Names Still Going Strong: McKeever

After strong sales in August, retailers face an uphill battle to keep that momentum going, Patrick McKeever of MKM Partners said Tuesday on CNBC.

On “Fast Money,” he noted that retail stocks were up 20 percent year to date and linked recent weakness to concerns about September same-store sales comparisons.

Also, “there’s some anxiety about the election,” he said.

But there were strong points in retail.

McKeever’s long positions TJX Companies and Ross saw comps grow “north of 6 percent,” he said, and DSW also saw a strong September.

Family Dollar, which reports earnings on Wednesday, appeared strong, even as its addition of food items to their stores puts pressure on margins.

The flip side, McKeever added, was that the move also increased foot traffic to stores, even as the store held the lowest operating margins in the space.

“I think they can do things that they create from adding more consumables,” he said.

Trader disclosure: On Oct. 2, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Dan Nathan is long AAPL OCT 700/705 CALL SPREAD; Dan Nathan is long XLY NOV 46/44 PUT SPREAD; Dan Nathan is long YHOO JAN 17/5 CALLS; Dan Nathan is long FB NOV/JAN 22 CALL SPREAD; Dan Nathan is long GOOG 715/680/645 PUT FLY; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long F; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long P; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long WYNN; Simon Baker is long AAPL; Simon Baker is long GS; Simon Baker is long AMZN; Simon Baker is long GOOG; Simon Baker is long MDLZ; Simon Baker is long LEAP; Simon Baker is long CSTR; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long SBUX; Stephanie Link is long KFT; Stephanie Link is long MDLZ.

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