Jim Cramer -- First Data Down Despite Upgrades; Retailers Plagued by Warm Weather
Despite catching nine positive analysts ratings on Monday, shares of First Data (FDC) - Get Report were down 1.5% midmorning after rallying over 4.5% in pre-market trading.
The company went public last month to a rather "muted reception," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.
Even on the IPO, the stock did not trade very well, and that's probably because it had a slightly higher valuation than its peers, he added.
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Cramer turned to retail, noting that analysts at JPMorgan (JPM) - Get Report turned negative on many major companies in the group, including Macy's (M) - Get Report , Dillard's (DDS) - Get Report , Kohl's (KSS) - Get Report and Nordstrom (JWN) - Get Report .
The reason? Too much winter apparel in stock and too warm weather outside. The combination of a warmer-than-usual fall and expectations for a mild winter mean many retailers will be oversupplied with cold-weather apparel.
It's something that Cramer pointed out last week when Men's Wearhouse (MW) released its disastrous earnings report.
However, not all retailers are suffering; Cramer pointed out that he still likes Costco Wholesale (COST) - Get Report and TJX Companies (TJX) - Get Report .
We'll find out autumn's impact and the forward outlook soon enough, with Macy's reporting on Wednesday and Kohl's and Nordstroms reporting on Thursday.
At the time of publication, Cramer's Action Alerts PLUS had a long position in COST.