Black Friday Could Bring Relief Rally for Beaten-Up Retailers

Target’s earnings on Wednesday crushed estimates, and the stock market rewarded the retailer. But things have not been great for many other retail store brands that recently reported quarterly earnings. Still, a relief rally could be looming for some of the hard-hit retailers like Home Depot, based on a CNBC analysis of recent Black Friday period trading history, conducted using the Kensho hedge fund analytics tool.

The SPDR S&P Retail ETF, the XRT, fell by nearly 2% on Tuesday, with disappointing results from Home Depot and Kohl’s pressuring the sector. Home Depot and Kohl’s both reported a miss on revenue, while lowering their full-year forecasts. In response, Kohl’s saw its worst day ever, plummeting nearly 20%. Home Depot suffered its worst day since February 2018, shedding more than 5%. Adding to the retail pain, Urban Outfitters fell double digits after it missed third-quarter profit and sales expectations. But over the past 5 years… CNBC News

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