It's going to be “big box” before the bell Tuesday as the biggest retailer in the world, Wal-Mart (WMT) reports earnings. And also out with their numbers, the world's biggest home improvement store, Home Depot (HD). What’s the trade?
Jeff Macke expects “big box ugly.” He feels Wal-Mart is famous for missing numbers and blaming external factors. He clearly thinks Wal-Mart will say bad things about the economy Tuesday. He adds how they indicate for back-to-school will be a big deal.
On a related note, Jeff expects the negative news to ripple through the sector. He recommends buying Costco (COST) and Target (TGT) on any dip.