real-time news and commentary for investors
Thursday, Aug 15
Wal-Mart's soft sales confirm broad retail trend
- The warning signs have been out for a few weeks, but Wal-Mart's (WMT) Q2 report confirms that consumers in the U.S. have been pulling back.
- Though the excuses from companies vary - weather, auto purchases, payroll tax hike - the trend toward softer discretionary spending on lower traffic remains consistent.
- Sector alert: In addition to missing analyst estimates, Wal-Mart also showed a jump in inventory levels in Q2 and warned on emerging markets.
- On watch: Costco (COST), PriceSmart (PSMT), Target (TGT)
- Related ETFs: XRT, RTH, PMR, RETL.