Other stocks moving in what could be a reaction to President-elect Donald Trump's comments on the strong U.S. dollar and trader buzz over the GOP border tax being pulled back include PVH Corp. (PVH +4.3%), Caleres (CAL +5%), G-III Apparel Group (GIII +3.9%), Wolverine World Wide (WWW +2.1%), Deckers Outdoor (DECK +1.5%), Luxottica (LUX +8.4%), Ascena Retail Group (ASNA +3.3%), Francesca's (FRAN +2.8%), Michaels Companies (MIK +6.1%), Dollar Tree (DLTR +3.7%), Dollar General (DG +2.1%), Abercrombei & Fitch (ANF +3%), Sears Holding (SHLD +4.6%), Guess (GES +3.9%), Vera Bradley (VRA +4%) and Hanesbrands (HBI +2.5%).
The broad sector rally arrives after selling pressure for the first part of 2017.
Stifel Nicolaus Chief Economist Lindsey Piegza provides some analysis to Seeking Alpha on today's retail sales print.
"While consumers may be increasingly optimistic regarding the future for the U.S. economy as the Trump administration (potentially) ushers in a series of pro-growth policy initiatives, at least for now, consumers are waiting for the proof before buying the pudding," Piegza writes.
"At this point, most Americans are still feeling the pinch from rising health and housing costs against the backdrop of still-modest income gains," she adds.
Retail sales rose 4.1% in December on a year-over-year comparison and 0.6% on a monthly view. Retail sales showed some acceleration from the pace seen in November.
Department stores, restaurants and electronics stores all showed drops during the month, while the nonstore retailer category [Amazon (NASDAQ:AMZN), eBay (NASDAQ:EBAY), etc.] and the auto-related categories were strong.
Keep an eye on Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) after the general merchandise store category surprised with declines of 0.5% M/M and 2.8% Y/Y in December.
For calendar year 2016, retail sales were up 3.3% to top the 2.3% pace seen in 2015.
Wells Fargo walks away from the ICR Conference with the view that the retail sector is close to "uninvestable" in the near term.
The investment firm notes the 2016 holiday season was set up for solid numbers off of favorable weather patterns and easy comparisions to 2015.
The two-week long of guidance cuts across the sector has ended that vision.
Lululemon (NASDAQ:LULU), TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST), Burlington Stores (NYSE:BURL) and Ulta Salon (NASDAQ:ULTA) are singled out as the only names coming out of ICR with some optimism.
Shares of traditional department stores tumble after-hours as Macy's (NYSE:M) and Kohl's (NYSE:KSS) cut earnings estimates due to weak holiday sales (I, II); Macy's also added details on its previous announcement to close 100 stores, saying the moves will result in 10K job cuts and a $575M reduction in 2017 sales.
The news causes a ripple effect across the sector: JWN -5.9%, JCP -4.8%, DDS -3.4%, SHLD -2.5%, TGT -1.8%, ROST -1.5% AH.
Apparel and accessory companies with significant presences in big box retail also are lower: KORS -2.8%, COH -2.6%, KATE -1.1% AH.
Retail stocks are lower on a mix of news that includes the sharp drop in durable goods orders, soft earnings reports (Bed Bath & Beyond), cautious analyst notes and perhaps the biggest drag of all - talk of an import tax.
A new Trump wildcard also emerged when Carl Icahn was named as a special advisor to the new administration. Icahn is a critic of the trading of biofuel Renewable Identification Numbers (known as RINs). Retail chains that sell gas sometimes benefit from the RIN program.
Casey's General Stores (CASY -2%), Alimentation Touche Card (OTCPK:ANCUF -1.5%), Murphy USA (MUSA -4.6%), Kroger (KR -0.5%), Sprouts Farmers Market (SFM -3.3%), Supervalu (SVU -3.5%), Ingles Markets (IMKTA -2.9%) and Weis Markets (WMK -1.5%) are all notably lower off the mix of news.
Wal-Mart (WMT -2.2%), Target (TGT -3.4%) and Dollar General (DG -3.7%) are also trading off.
Donald Trump gave investors a road map to the administration.
The President-elect tweeted that the two simple rules of his administration are to buy American and hire American.
If trade and tax policies are supported by DJT's new directive, there could be some broad implications for certain stocks.
Companies like Target (NYSE:TGT), Kroger (NYSE:KR), AT&T (NYSE:T), Ulta Salon (NASDAQ:ULTA) and Cedar Fair (NYSE:FUN) could be in a decent position, while things get trickier for the likes of Nike (NYSE:NKE), Procter & Gamble (NYSE:PG), Ford (NYSE:F), Toyota (NYSE:TM) and a host of other multinationals.
There's also big players like Anheuser-Busch InBev (NYSE:BUD) and Intel (NASDAQ:INTC) that stand somewhere in the middle.
Add your own "buy American, hire American" stock picks in the comment stream.