This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

November Retail Sales Encouraging

Stocks in this article: AMZN AZO WAG BBY HD GPS

On the other hand, sporting goods and hobby stores saw strong sales, with growth of 2.3% on top of 0.6% growth in October and up 12.3% year over year. Autos, appliances Furniture and sporting goods are all areas where consumers can very easily put off buying if they are worried about the future. The mixed bag of results for the month in these discretionary categories is thus giving no clear signal about the overall tone of the economy.

Sales in the building materials and garden center stores like Home D (HD - Get Report) were down 0.1% on the month, after rising 3.3% in October and are up 12.3% from a year ago. Given how weak the construction industry has been, up 12.3% from a year ago is a very strong showing. But then again, a year ago things were pretty depressed. It may also be that people are spending more to spruce up their existing place, rather than move into new homes.

The one discretionary area that did show some rebound was in clothing stores like The Gap (GPS - Get Report), where sales were up 2.7% on top of a 1.2% rise in October. Relative to a year ago they are up 3.5%. A new pair of jeans is a bit less discretionary than a new kitchen table, but more discretionary than going to the grocery store. Colder weather might have also played a role in the strong showing for the month.

Going out to eat and drink is also a very discretionary item, and sales at bars and restaurants were up 0.1%, down from a 0.5% rise in October, and are up 3.9% year over year.

The Take-Away: Encouraging Report

Overall this is a encouraging report, especially considering the sharp upward revisions to last month's numbers. The strength was a bit less broad-based than last month, when eleven of the store types were up and just two down, but still, eight to five is not all bad.

It shows that despite what we have seen in the consumer confidence surveys, that consumers are actually acting much more confidently, and are starting to buy some of the big ticket discretionary type items.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs