NEW YORK ( TheStreet) -- While retail sales may have come in lower-than-expected on Tuesday, the market didn't seem to mind. But that may change with the sector reporting earnings, says TheStreet's Debra Borchardt and Cuttone & Company's Senior Vice President Keith Bliss.
Investors were disappointed when Macy's (M) reported earnings on Wednesday morning, and with Wal-Mart (WMT), Kohl's (KSS) and other retailers scheduled for later this week, the retail sector could be headed lower.
However, department stores and teen retailer disappointments could just be the beginning, according to Bliss. He said construction supply, home improvement stores and furniture sales were all down month-over-month.
Aiding the argument was Deere & Co. (DE), which reported earnings on Wednesday. The company posted an 11% decline from last year in its forestry division. In other words, demand for lumber, which is used for housing, was lower.Should the strength in the housing market dwindle, then the overall economy will likely begin to slow as a result. Bliss added that 70% of the GDP is consumer-driven, and that economists may begin to scale back growth estimates, if retailers continue to struggle. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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