Retail stores are having a happy Wednesday, with Costco Wholesale Corp. (COST) up nearly 5% and leading the Standard & Poor’s 500 index, and J.C. Penney Co. Inc. (JCP) and Nordstrom Inc. (JWN) all near the top of the index, up 3.6% and 2.4%, respectively.
Clothing retailers Express Inc. (EXPR), up 9%, and American Eagle Outfitters Inc. (AEO), up 7%, are also doing well, both posting gains after good earnings.
As previously noted, Costo’s bump is partly due to its special dividend payout, and partly on a 6% jump in same-store sales. Penney’s rise means its up 5% on the week, though Nordstrom is still down 2.5% since Monday.
There may be some positivity around the department stores as the festive shopping season seems to have started well — but as Zero Hedge notes in its inimitable style, data about Black Friday sales may not tell the whole story:
Black Friday sales can either signal a healthy consumer or a desperate one, depending on the state of the economy. The bottom line is that we advise fading the Black Friday sales reports, but paying attention to the aggregate holiday sales reports.
So, well, maybe the holiday season sales data means good news, or maybe not.
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