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Market Updates

July Retail Sales

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July retail sales came in slightly better than May and June, but it was the worst three month period since 1991. Discount retailers performed the best, and apparel retailers performed the worst.

Wal-Mart        WMT     up 6.0%
Kmart           KM      up 3.4%
Target          TGT     up 4.6%
Family Dollar   FDO     up 7.7%
Ann Taylor      ANN   down 17.4%
Abercrombie     ANF   down 14.0%
Gap             GPS   down 12.0%
Pacific Sun     PSUN  down  5.3% 
American Eagle  AEOS    up  3.7%
Abercrombie and Fitch Daily Chart

Abercrombie and Fitch got into trouble in late July when it fell out of its ascending channel, and the 50-day moving average rolled over. ANF was temporarily able to find support at $35, the 38.2% retracement level and bullish support line on the point and figure chart, but today's atrocious sales number has the stock down over $5. The drop has Abercrombie relying on the 200- day moving average and 50% retracement level for support. Trends in fashion can quickly change, and so has the trend of Abercrombie's stock.

Kmart Daily Chart

Kmart still has a nice up trend going, up 147% percent this year. Along the way the stock has dipped below the 50-day moving average and fallen into some trading ranges, but overall the trend continues to be up. Even though it has been reported that Kmart has been able to get away with charging higher prices than fellow discounters, the stock is bumping its head against the top of the channel, and may consolidate or pullback.

Gap Daily Chart

The Gap gapped up in May, but it's been down since then. That pretty much sums up Gap's performance in 2001. The stock has traded as high as $35, but fallen as low as $22. There is a shallow up trend to support prices, but there is also a downtrend trying to squash prices. Looks like more choppy trading for the Gap. Jeffrey Canavan
Assistant Analyst

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