Chris covered the earnings reports from some of the biggest retailers:
Urban Outfitters Inc. (NASDAQ: URBN) missed on revenue as comparable retail segment sales decreased 28%, and the stock was down about 9% on the day. Chris is bearish on the stock.
Lowe's Cos. Inc. (NYSE: LOW) reported EPS of $1.77, which was $0.45 better than consensus analysts estimates. Chris is bullish on the stock, but thought it was slightly overbought this morning. Shares started about 3.5% higher and sold off to close flat for the day.
Target Corp. (NYSE: TGT) reported earnings of $0.59 per share, $0.19 better than analyst estimates. Chris also likes this stock and thought it was overbought heading into earnings. That's likely why shares sold off 3.2% on the day, despite solid earnings.
Overall this is how Chris is thinking about the retail sector:
He's bearish on companies that require consumers to browse the selection of goods before buying - think clothing companies, like URBN and AEO.
He's bullish on businesses that consumers go to because they need buy specific things - think home improvement companies, like LOW and HD.
Shah thinks the Nasdaq could easily hit 9,500 by the end of the week.
Investors are thinking the worst could be behind us.
But Shah is still concerned about the 36.5 million Americans unemployed and the new number coming in tomorrow - which will likely be in the millions.
After earnings season dies down next week, Shah thinks the market could consolidate and trade sideways until we get serious positive or negative news to push us one way or the other.
He doesn't think it's time to go "all in" and investors should have tight stops on their positions.
Catch us tomorrow - starting LIVE again at 8:45 a.m. EDT with Chris Johnson, right here.
If you missed our live streams today, you can now replay them on our YouTube channel, here.
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