August 22, 2023, 3:46 pm EDT
Bloodshed on Retailer
Today, it was a day of bloodshed for retailers as Dick’s Sporting Goods Inc (DKS) revealed its earnings report. Its stock tanked with other retailers:
DKS -24%, M -14%, VFC -6%, BBY -6%, BBWI -5%
An overheated US economy concerning strong housing and job markets may force Fed policymakers to keep raising its rates for the days to come. Otherwise, inflation risk is likely to stay longer.
This view simplifies the complex economic conditions and geopolitical uncertainties with an easy-to-understand explanation. In the meantime, we pay attention to the US-China relationship that could cause a drop in the bond markets recently. China may keep dumping the bond which would give US pressure on the higher yields as well.
Another activity to draw our attention is the COVID-19 resurgence that reflected on the rise of vaccine makers:
BNTX +5%, MRNA +4%, NVAX +13%
If COVID-19 is out of control again that could trigger another shutdown. It would be another disaster. Meantime, we need to alert on it.
The overall market is in pullback mode so staying lightweight in the portfolio could be a good choice.