Diamonds and Dogs
Revenge of the retailers. Investors ae flocking back to the retailers for at least a day. Foot Locker (FL) is jumping 24%, Abercrombie & Fitch is up 20%, Ross Stores is up 10%, Gap is up 7% and Buckle is up 5%, all following earnings. Besides better than expected earnings, Foot Locker is also elevating the consumer experience with Nike by hiring new experts specially trained on Nike products. Up until now, investors were concerned Nike was moving away from Foot Locker. Even with today's jump, Foot Locker's stock is still down 40% for the year.
Industrial, Cummins (CMI) is taking a hit this morning. The diesel engine maker is down 4% to a 2 1/2-month low following the unveiling of Tesla's new electric-powered Semi truck. Cummins made a case that it was more than just a diesel engine company and they also think the worst vehicles for electrification are long-haul, over-the-road heavy duty trucks, basically what Tesla unveiled. In the short term, investors are not listening.