NEW YORK (TheStreet) -- The consumer is not dead, with Abercrombie & Fitch (ANF), Target (TGT) and Macy's (M) posting big gains on Wednesday. Despite the weather, people have been shopping.
On CNBC's "Fast Money" TV show, Karen Finerman, president of Metropolitan Capital Advisors, saw a holdover from Tuesday's retail strength, with strong results from Macy's and acceptable quarterly numbers from Target. Target management set the bar low and delivered enough.
Target's quarter wasn't great, said Guy Adami, managing director of stockmonster.com, though margins seem to be contracting and the stock has been discounted enough that the stock can still go higher from Wednesday's close at $60.49 a share.
Steve Grasso, director of institutional sales at Stuart Frankel & Company, said that he got long on Abercrombie against its $30 support. "Everyone threw this name out, everyone thought it was over," Grasso said. He was buying it on the chances of an LBO and on technicals. He's still long Abercrombie after it closed at $40.04 per share Wednesday and thinks it goes higher.
The price action in Home Depot (HD) was notable, as it hit all-time highs today, said Dan Nathan, co-founder and editor of riskreversal.com. Sentiment in the retail space got really bad, and heading into these quarterly reports in the sector the companies had not confirmed the new highs in the S&P 500 we've seen this week.
Grasso warned that despite testing highs, he doesn't think the market is breaking out here. Too many investors are scared of buying at the peak and looking stupid.