Retail stocks take another hit today on BJ warning

Retail stocks take another hit today on BJ warning

More woe for the retail sector this morning BJ’s Wholesale (BJ) reported first-quarter results before the market open that missed expectations for same-store sales growth (with earnings per share matching estimates.) The big killer, though, was guidance from the company that said second-quarter comparable store sales are tracking below the 5.7% increase in the first quarter. That 5.7% growth in first-quarter comparable store sales was below the 5.9% that Wall Street analysts had expected. The stock closed today down 7.26% on the day.

Watch My YouTube Video: Trend of the Week How Tired Is the Consumer?

Watch My YouTube Video: Trend of the Week How Tired Is the Consumer?

This week’s Trend of the Week is How Tired Is the Consumer? Consumer spending makes up 70% of the economy, so if consumers get tired and start spending less, the economy as a whole will slow down. The current consumer data doesn’t look good. Credit card debt is at an all-time high and delinquency rates are up to 4%. On February 21, Walmart (NYSE: WMT) came out worried about the full year, noting that consumers were purchasing less-expensive goods, and lowered its guidance for 2023 below Wall Street expectations. However, the lowered guidance didn’t affect the stock price. Why? As consumers are looking more tired, investors will look for stocks like Walmart and Costco, where a consumer would go to substitute products with lower prices. If you’re looking to put some money somewhere if the consumer is looking tired, Costco (NASDAQ: COST), Wal-Mart (NYSE: WMT) and Dollar General (NYSE: DG) are good options. If you believe the consumer is REALLY tired, you may want to look to put your money somewhere outside of the market, like a CD with a 5% yield. For other 5% options, check out my recent post “The best way to get a 5% yield–my choices and their pluses and minuses”: https://www.jubakpicks.com/the-best-way-to-get-a-5-yield-my-choices-and-their-pluses-and-minuses/.

Step #2 (of 5) in Is Your Portfolio Ready for the Next Big One–a Special Report update on what to sell

Special Report: Are you ready for the next Big One? A 5-Step Portfolio Strategy–Part 1, the odds of a Recession or Credit Crunch, Step #1 Foundation Buys, Step #2 Sectors to Sell, Step #3 More Hedges, Step #4 Rebelancing

Is a Recession coming? I don't mean "someday." Someday the sun will go nova but I don't need to price that in to my investment strategy. But a Recession in 2020 or 2021? That's something to take into account. And to prepare for to the degree possible. Or a Credit...