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.