This Day On The Street
Continue to site right-arrow
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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

GM in Reverse; December Retail Sales: Best of Kass

Stocks in this article: TBTGMF

I have been emailing back and forth with Stephanie Link and Jim Cramer and have read their comments on the guidance. They have convinced me, and I agree that GM should be bought.

I am buying at $39.50 in premarket trading now.

At the time of original publication, Kass was long GM.

Parsing the Data
Originally published on Tuesday, Jan. 14 at 9:35 a.m. EDT.

Retail sales in December were better than forecast, but if we include the November downward revisions, the two months taken together are about in line.

Sales ex-autos and gasoline were higher by +0.6% vs. the estimate of up +0.3%, but November was revised down to a gain of +0.3% vs. the original print of up +0.6%.

The core measure of sales, which also takes out building materials, rose +0.7% vs. the estimate of up +0.3%, but last month was revised down -0.3%.

<div class="promoYahoo">
<div align="left"><strong><strong>[Read: <a href="" target="blank" data-add-tracking="true"><em>The New Mercedes C Class: A Tesla Competitor?</em></a>]</strong></strong></div>

Within the report, sales of electronics fell in both November and December and were very mixed at department stores. Online retailing, of course, took more share with a +1.4% increase after rising +1.6% in November. Clothing stores saw a sales gain of +1.8% after dropping -0.5% in November.

Bottom line: Because the December beat was offset by the November miss, fourth-quarter GDP estimates should not change on this number. We know from many retailers that have spoken that the holiday was extremely competitive and challenging.

<div class="promoYahoo">
<div align="left"><strong><strong>[Read: <a href="" target="blank" data-add-tracking="true"><em>Getting Your Money Back From Charges in Kids' Apps</em></a>]</strong></strong></div>

Most important, today's retail data signals that Friday's December jobs report likely exaggerated the weakness in the jobs market.

Tactically, I am considering going back  -- yesterday I bought and sold ProShares UltraShort 20+ Year Treasury (TBT) -- and taking a small TBT long rental to hedge my interest rate risk in my closed-end municipal bond fund exposure, but I have not yet done anything.

At the time of publication, Kass and/or his funds were long/short XXX, although holdings can change at any time.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV


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%

Our Tweets

Partners Compare Online Brokers

Top Rated Stocks Top Rated Funds Top Rated ETFs