With retail sales coming in better than expected... what kinds of names in the sector should you be buying?
I don’t like a lot in the retail space says Jon Najarian on CNBC’s Closing Bell. I don’t expect consumer discretionary businesses like Cheesecake Factory (CAKE) to do well into next year.
With PPI up 3.2% the consumer is going to be facing a higher hurdle, he adds. Will consumers be able to spend at the pace necessary to sustain discretionary stores? I would say no. Stay on the sidelines.
The one area I like is consumer staples, Najarian adds, and I track that with the Consumer Staples Select Sect. SPDR (XLP). Also, I think Procter and Gamble (PG), Altria (MO) and Wal-Mart (WMT) are long-term buys. But stick with places where people buy Cokes and smokes.
