The biggest story on Thursday had to be the collapse of many retail stocks. Macy’s (M) started the carnage with an 11% drop on very disappointing earnings. It was joined by many other retail giants including Kohl’s (KSS) which fell 7.8% and after hours even Nordstrom which beat estimates fell 5%. Before trading in Macy’s Stock I would wait for the “smoke” to clear as the stock is now back at levels last seen in 2011.
Macy’s Stock Chart
Oil meanwhile rose again and Verizon beat out AT&T to buy Straight Path for double what AT&T was paying. Snap Stock (SNAP) fell 21.45% by the close to $18.05, just above the IPO entry price of $17. It was the worst decline for the stock since going public in February.
It was the worst day in about a month for the market with all 3 indexes lower but by the close they were well off the lows of the day.
Morning Open Should See Bounce Attempt
For the morning on Friday I would expect a jump in the retail sector before more selling arrives. Overall I think retail is moving lower short-term. Certainly, retail is not the place to hide out the summer months as retail is bound to pullback after any bounce attempt.
Articles For End Of Day
The day started with an update on the Trade Ahead Of Earnings Strategy trade for Thursday.
The second article was a strategy paper looking at understanding the importance of “thinking small” when selling options in a stock market that is at lofty levels.
The third article was a look at the Nordstrom stock fall after hours on Thursday.
The fourth article was a look at a trade in Exxon Mobil Stock that investors may want to add to their watch list for Friday. This trade was outlined in the end of day report from May 10.
The fifth article is a look at two trade ideas for Friday May 12.
New Email Newsletter
Just a reminder again that the new system is now in-place for email updates, however for investors interested in email updates, you have to register again. You can use the form to the right of this article in the sidebar or the form at the bottom of this page for those interested in staying in touch through email. I hope you’ll join me. I’ll be stopping this notice on Friday. All email address in our older database will be deleted this weekend, so if you have not signed up, you should consider doing so by Friday. Thanks!
Market Direction Internal Links
Profiting From Understanding Market Direction (Articles Index)
Understanding Short-Term Signals
Market Direction External Links
IWM ETF Russell 2000 Fund Info
Market Direction SPY ETF 500 Fund Info