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Trading Macy's and the retail wreck

Macy's stock is under pressure today after the company reported a disappointing quarter.

While the retailer did beat earnings estimates, it missed on revenue and posted its fifth straight quarter of declining same-store sales.

Macy's miss affected sentiment in the retail sector more broadly, with names like Nordstrom and Kohl's lower for the day.

The "Halftime Report" experts discussed how to trade the retail wreck, and which names will weather the storm.

Steve Weiss is bearish on Macy's and the retail space more generally. His argument comes down to the fact that given so many choices, consumers are shopping at department stores less and less.

"You are seeing the slow death spiral of the departments stores as there are so many alternative avenues," he said. While the thinks Macy's stores won't disappear entirely, he believes that they have to "massively shrink square footage."

Macy's CEO Terry Lundgren pointed to "continued weakness" in consumer spending as impacting the company's top line.

Jim Lebenthal noted that he, too, was surprised that consumer spending hasn't picked up given low energy prices. At the moment he's not jumping into the space. "There are very few winners out there," Lebenthal argued.

That said, Lebenthal remains bullish on J.C. Penney, which he has held for over a year.

Pete Najarian thinks Target's turnaround story and continued push into online sales makes it an attractive play in the sector.

As Amazon continues to cut into traditional brick-and-mortar stores' business, Jon Najarian believes that T.J. Maxx and Burlington are names that can weather the e-commerce storm.

Trader disclosure: On May 11, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Jim Lebenthal: Long AAPL, BA, C, CSCO, DCO, DIS, EEQ, GAIA, GM, INTC,JCP, KMI, KMY, MPC, OA, ORBC, PFE, QCOM, QRVO, SPLS, TIF, TRN, TWX, WGO

Jon Najarian: Long CCI, CHS, DIS, ECA, NFLX, PEP,PFE, RAX, XPO Long Calls BAX, DHR, FIT, GDX, LVS, MDLZ, MO MSFT, QCOM, XOM,YHOO, YNDX. Short puts SCTY

Pete Najarian: Long AAPL, BAC, BMY, CSCO, DIS, DISCA, GE, GS, KMI, KMI.A, KO, LUX, MRK, PEP, PFE, SAVE, TMUS, VIAB, ZIOP. Long calls: AAL, AGN, AKS, AMJ, COP, EGO, EWZ, HAIN, HBAN, JD, KATE, KBH, KMI, LC,LLY, MSFT, MT, NLNK, SLV, TCK, TEX, UAL, YHOO. Long Puts: FCX, NOV, PBR, VLO

Steve Weiss: Long AAL, CVC, DAL, JD, SXL