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

'Fast Money' Recap: The Consumer Is Not Dead



Jerry Storch, CEO of Storch Advisors and former vice chairman of Target, sees today's gains as stock-specific rather than an indicator that the consumer is out there spending. Abercrombie, Target and Macy's are stocks that have all been hammered and are now coming back, having exceeded low expectations, Storch said.

Storch said Target remains a top-of-class stock. He noted he last appeared on Fast Money following Target's highly publicized security breach. It's a one-time event, he said at that time. It's a rich company that could pay for any fines, and what we saw on Wednesday was the company moving beyond it, he said during this more recent appearance.

Target has lagged others on the Internet, Storch said. They have a lot of work to do in that area. There's also a real focus on value. As we saw last week, Storch said, even Wal-Mart (WMT) isn't value enough for today's consumer, which is why the dollar stores are doing well.

Finerman asked Storch whether a beauty products company like Ulta Beauty (ULTA) is less susceptible to the online threat. Nobody's immune, Storch said. The winning retailers of the future have to have great websites and do omnichannel retailing. Macy's is off to a pretty good start.

Finerman said that while J.C. Penney (JCP) began jumping in after-hours trading on Wednesday, it had such a low bar to clear and she still thinks it's expensive.

Nathan coined the phrase "Triangle of Death" in reference to a chart of Whole Foods' (WFM) stock price movement from April 2013 to Wednesday's close. The stock is sitting on a massive support level right above the gap level of $50 last year. If that breaks, a 10% decline could occur very quickly.

Nathan said Starbucks (SBUX) could also be approaching the Triangle of Death very soon, another stock that is a poster child for consumer discretionary spending.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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
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!
DOW 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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