Active Trader Update
Turn to Retail Off Jobs Report
Jim Cramer
01/05/07 - 03:37 PM EST
This column was originally published on RealMoney on Jan. 5 at 9:25 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
Shoot! Rate cuts are now on hold because of this employment number. Now we have a real quandary on our hands, because the money that's flowing into health care stocks has to take a break and the money flowing into tech will pause -- remember, only momentarily -- until the hedge funds are done buying their puts.
Of course, I can make a "growth with no inflation" argument, and the bulls most certainly will.
So, if that's the call, who benefits? Retail. I believe that retailers did better with December sales than people realized, given the global -- not warming but hotting that we're experiencing.
The Best Buy(BBY Quote) report gives the bulls something to hang their hats on.
Look for Nordstrom(JWN Quote) and Saks(SKS Quote) to move up.
And I would rotate back into J.C. Penney(JCP Quote) and Kohl's(KSS Quote).
Sears(SHLD Quote) has sat here forever; let me throw that in, too.
Not an ideal group to roll into, but then again, with no data points other than Best Buy's out today, the group could be all play and no work, which keeps things from being dull.