Happy Monday! Hope you all had a stupendous weekend. We are ready to get this weekend started on a good note with some solid investing today, following up a strong Friday. I will get back to Friday’s pick after we get to today’s important stock selections.
Buy Pick of the Day: Pacific Sunwear of California Inc. (PSUN)
This morning, the market is looking to start off on a good foot after a number of market moving news was released that was pretty positive. On the plus side, General Motors commented that they have a $1.2 billion loss since they came out of bankruptcy through September 30, the company’s Q3. It was one of the best quarters in a long time for the struggling auto giant and a definite positive for the future.
“We have significantly more work to do, but today’s results provide evidence of the solid foundation we are building for the new GM,” CEO Fritz Henderson said in a statement.
The market was reacting fairly well to the news along with the news we got out of the retail sector. Retail sales were up 1.40% in the month of October, which was much better than the 2.30% decline seen in September, and the 1.4 number beat estimates at 1.00%. On the earnings front, as well, Lowe’s reported earnings that met estimates and gave good forecasts for the future. Further, investors are always excited when Bernanke is speaking, which will occur this afternoon. So, all in all, there appears to be a lot of positives moving into the day. As of 8:15 AM, futures were up 63 points for the Dow. Those numbers have come down to around 45 after Core Retail Sales were weak at 8:30, but the green is still there.
I like Pacific Sunwear (PSUN) for today in this market that looks ready to rally. Teen retailer Abercrombie and Fitch led the
way for teen retail with some very positive earnings at the end of last week, smashing estimates and gaining lots of ground on the previous four quarters. A very similar company to PSUN is Urban Outfitters, who are in that niche teen retail sector. URBN also beat earnings last week by 0.01. PSUN reports earnings in after hours today, and the stock is actually down in pre-market trading. I would not expect a huge rally, but with the market looking positive and a stock that should get some attention for…
