Retail Sector Market Performance

TIcker Sense has a nice few charts up showing how the Markets (Thanksgiving Returns) and the Retail sector perform post Thanksgiving.

Historically, retail stocks run up in anticipation of the holiday season. Once its finally here, many of the gains amy be built in already.


Source:  Birinyi Associates

MarketBeat Breaks it down for us:

The worst-performing stocks have been consumer-electronics names, which have lost, on average, 9.1% in the post-Thanksgiving period. The best are clothing retailers, which have lost a mere 1.4%. Going back to 1996, the picture looks a little better. Clothing retailers, general merchandisers and home-improvement stocks have shown positive returns in the Thanksgiving-to-New Year’s period, with gains of 1.75%, 2.74% and 6.31%, respectively, beating the S&P 500’s 0.82% return during that time. But consumer-electronics stores, department stores and specialty retailers have all posted negative returns. Electronics retailers have done the worst, with average losses of 4.39%.

Good stuff . . .


Birinyi Associates

Buying Retailer Goods, Selling Retailer Stocks
David Gaffen
WSJ Marketbeat, November 24, 2006, 10:48 am

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What's been said:

Discussions found on the web:
  1. V L commented on Nov 25

    Black Friday??? Mark-Downs??? Wake up America – US government has been rubbing you of your wealth! The most significant mark-down has occurred in the value of your currency (secondary to US government injecting liquidity, borrowing and spending, etc)!
    Comparing to 2000, the Dow priced in Euros is down by over 27%; for 2006 (a.k.a. liquidity driven Wall Street’s phony rally) it is only up by about 3% when priced in Euros, compared to its headline 14.5 % advance in sinking U.S. dollars.

  2. V L commented on Nov 25

    Typo: They are robbing (not rubbing)

  3. number2son commented on Nov 25

    Hey, I noticed my credit card company is not sending out statements in November. A one month holiday from paying my credit card bill!

    It’s good to find the banks are doing their part to prime the pump for the holiday season.

    What a wonderful world we live in, what a magical beautiful place.

    And “Black Friday” has entirely different connotations for me as I always hear the great Steely Dan song play in my head:

    “When Black Friday comes
    I’ll stand down by the door
    And catch the grey men when they
    Dive from the fourteenth floor
    When Black Friday comes
    I’ll collect everything I’m owed
    And before my friends find out
    I’ll be on the road
    When Black Friday falls you know it’s got to be
    Don’t let it fall on me …”

  4. Cherry commented on Nov 26

    Retail sector performance describes the pre-recessionary condition that has evolved in fall 2006.

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