By Brian Hunt | 30 October 2007
The stock market's opinion of the U.S. consumer is clear: He's sick as a dog.
We typically don't pay much attention to the "consumer is dead" crowd. Bears have been calling for the demise of the American spender for decades, and he's proven more resilient than a cockroach. But one look at the list of stocks scraping new 52-lows reveals a shocking trend… America's premier "consumer" stocks are tanking.
A few of the biggest losers here: Cabela's (outdoor gear), JCPenny (department stores), Nordstrom (high-end retail), Stein Mart (department stores), La-Z-Boy (furniture), Pool Corporation (pools), P.F. Chang's (restaurants), Brunswick (recreational boats), and Liz Claiborne (clothing)… all setting new 2007 lows.
And perhaps the most troubling loser? We present the nation's largest home improvement chain, Home Depot. The Depot lives and dies by America's propensity to spend spare cash on roofing, room additions, and lawn work. Second-quarter sales declined 1.8%... and the stock is down 21% this year. No, the consumer isn't dead, but his free-spending days are behind him.
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Normxxx
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