Retail Stocks Tumble

SWednesday August 16, 2017

 

HOME DEPOT AND LOWES TUMBLE... Heavy selling in retail stocks is weighing on cyclical stocks which are the one of the day's weakest sectors. Home improvement stocks are the day's weakest group in that sector. Chart 1 shows Home Depot (HD) losing nearly -3% and falling below its 50-day moving average. Chart 2 shows Lowes Companies (LOW) in a similar situation. Pier 1 Imports (PIR) is down -7%. Even bigger losses in other retail categories are being seen in Advanced Auto Parts (-23%), Dick's Sporting Goods (-21%), Coach (-13%), and Under Armour (-4%).

JohnMurphy at stockcharts.com

 

Amazon has lost 100 points form its high as well. Investors are abandoning retail period.

Transocean is already back to its February 2016 lows when energy prices and shares made the low and then reversed.  The same is true for XES Energy Service Shares.

 WTIC

Crude oil prices are in a large downtrend. The  latest drop suggests a re test of the apparent 43 support level.

The typical August Sept correction seems to be taking hold. Retail is seeing perhaps the biggest sea change since Sears invented catalog shopping in the 1890s. Really Amazon is just the Sears catalog on line rather than on paper.

Social Mood

Social Mood is rapidly deteriorating world wide. In the US, we have a repeat of the riots of the late 1960s.  Tearing down a statute does nothing to change history but is rather like ISIS destroying historic monuments in the Middle East. And destruction of property and death of innocents is sheer terror and mayhem, not a protest.

The WSJ notes the departure of some of the manufacturing council further erodes Trump support.  I lived in two different small towns as a teenager and again while in my 30s. Trump's determination to answer all imagined threats  or challenges would eliminate him from consideration as a small town Mayor or say President of the Chamber of Commerce.   Trump's support falls to 34$.

Elsewhere the situation in South America deteriorates. Iran threatens to pull out of the nuclear deal.  South Korea's President wants the last say on starting a conflict on that peninsula.  A former US Ambassador to China notes China will do nothing about Korea until literally forced to do so.

HOME DEPOT AND LOWES TUMBLE... Heavy selling in retail stocks is weighing on cyclical stocks which are the one of the day's weakest sectors. Home improvement stocks are the day's weakest group in that sector. Chart 1 shows Home Depot (HD) losing nearly -3% and falling below its 50-day moving average. Chart 2 shows Lowes Companies (LOW) in a similar situation. Pier 1 Imports (PIR) is down -7%. Even bigger losses in other retail categories are being seen in Advanced Auto Parts (-23%), Dick's Sporting Goods (-21%), Coach (-13%), and Under Armour (-4%).

JohnMurphy at stockcharts.com

 

Amazon has lost 100 points form its high as well. Investors are abandoning retail period.

Transocean is already back to its February 2016 lows when energy prices and shares made the low and then reversed.  The same is true for XES Energy Service Shares.

 WTIC

Crude oil prices are in a large downtrend. The  latest drop suggests a re test of the apparent 43 support level.

The typical August Sept correction seems to be taking hold. Retail is seeing perhaps the biggest sea change since Sears invented catalog shopping in the 1890s. Really Amazon is just the Sears catalog on line rather than on paper.

Social Mood

Social Mood is rapidly deteriorating world wide. In the US, we have a repeat of the riots of the late 1960s.  Tearing down a statute does nothing to change history but is rather like ISIS destroying historic monuments in the Middle East. And destruction of property and death of innocents is sheer terror and mayhem, not a protest.

The WSJ notes the departure of some of the manufacturing council further erodes Trump support.  I lived in two different small towns as a teenager and again while in my 30s. Trump's determination to answer all imagined threats  or challenges would eliminate him from consideration as a small town Mayor or say President of the Chamber of Commerce.   Trump's support falls to 34$.

Elsewhere the situation in South America deteriorates. Iran threatens to pull out of the nuclear deal.  South Korea's President wants the last say on starting a conflict on that peninsula.  A former US Ambassador to China notes China will do nothing about Korea until literally forced to do so.