Forget government numbers. Target (TGT) may just be the best barometer of economic behavior in this country. With customers that have a higher median income than Wal-Mart (WMT), about $150 million worth of merchandise sold per day and stores that blanket 47 of the 50 states, Target, the second-biggest discount retailer, could be the number one economic indicator.
Target’s earnings were good, Jeff Macke says. They weren’t too exciting but they hit estimates and show that neither the economy nor the consumer is dead.
Wal-Mart misses estimates constantly and blames it on others which is what is giving its earnings less credence these days, Jeff says, but Target is a “good merchant” that puts out consistent numbers that show the consumer is not rolling over just yet.
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Trader disclosure: On Aug 21 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money; Macke Owns (INTC), (ATVI), (EMC); Najarian Owns S&P Puts; Constance Hunter Is The Founder And Owner Of Coronat Capital Management; Coronat Capital Management Owns (INFY),(H&M), (USO); Coronat Capital Management Owns Yen; Coronat Capital Management Owns VIX Options; Coronat Capital Management Is Short (FXI); Coronat Capital Management Is Short (EWH) But Owns Local-Listed Hong Kong Shares