It’s increasingly clear that the polar vortex created havoc for retailers. As the snow piled up and temperatures plunged, many consumers simply stayed away from the malls. You can expect to hear all about it as earnings season unfolds. #-ad_banner-#Investors have already responded, shunning consumer stocks, and the key ETFs (exchange-traded funds) that track consumer discretionary spending are all under water for the year. As Citigroup analysts noted, “The worst performing sector thus far in 2014 is Consumer Discretionary, with the Retailing industry group plummeting nearly 8% this year.” But a late winter thaw may have set the stage for… Read More
It’s increasingly clear that the polar vortex created havoc for retailers. As the snow piled up and temperatures plunged, many consumers simply stayed away from the malls. You can expect to hear all about it as earnings season unfolds. #-ad_banner-#Investors have already responded, shunning consumer stocks, and the key ETFs (exchange-traded funds) that track consumer discretionary spending are all under water for the year. As Citigroup analysts noted, “The worst performing sector thus far in 2014 is Consumer Discretionary, with the Retailing industry group plummeting nearly 8% this year.” But a late winter thaw may have set the stage for much better days to come. And this lagging sector could deliver much better news as coming quarters unfold. Analysts at Deutsche Bank suspect that the end of the deep freeze in early March coincided with a profound change in economic activity: “The March economic data have bounced back sharply after being severely depressed in January and February,” they wrote this week, adding that “this weather-related payback is most evident in motor vehicle sales and the index of aggregate hours.” And though the widely followed Redbook store sales survey showed continued weakness in March, the International Council of Shopping Centers (ICSC)… Read More