NEW YORK ( TheStreet) -- The retail sector took some heat last week, but some companies fixed the damage with their earnings reports. TheStreet's Debra Borchardt and Laurie Kulikowski said J.C. Penney ( JCP) is rallying despite its second-quarter earnings miss.

Meanwhile, TJX Companies ( TJX) reported a strong top- and bottom-line earnings beat and is rallying as well.

Kulikowski said TJ Maxx was giving its customers what they want: the right product at the right price. She added that the store's home goods division was incredibly strong and that it remains a hot sector for 2013.

Conversely, Penney didn't do well at all. The company changed its home goods section, which now focuses more on furniture rather than furnishings, she added. So far, this hasn't been a great move.

While the results were bad, with Penney losing $2.16 per share, missing estimates by $1.10 per share, there was one lone bright spot: improved comparable-store sales -- albeit, only slightly.

Tuesday's move higher is largely thought to be a short squeeze, according to Borchardt, with 30% of J.C. Penney's float sold short heading into the report.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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