Consumer Spending Can Make this Rally Last

Bullish (Bull Market)

A rebound in Consumer Spending, if this keeps up, stocks can continue to climb. Consumer spending in the  Q1 09 increased 2.2% after dropping at a 4% annual pace in the previous two quarters.

U.S. spending added 1.5% percentage points to gross domestic product, which fell at a 6.1% annualized rate in the first quarter, nearly matching the 6.3% drop in the fourth quarter.

The Fly from said it best today:

In short, the rally will continue because inventories need to be restocked. Until we see utilization rates drop, the market will go higher, or sustain current levels.

I repeat: we will not trade lower, unless factory utilization rates head lower from here.

Get ready for fun in the retail stocks, they are all up big today, take your pick

Name Exchange  Symbol  Last Trade Change Mkt Cap  
Dillard's, Inc. NYSE DDS 7.51 +0.58 (8.37%) 551.64M  
Macy's, Inc. NYSE M 13.06 +0.48 (3.82%) 5.51B  
Retail Ventures, Inc. NYSE RVI 2.47 +0.18 (7.86%) 120.24M  
Gottschalks Inc. OTC GOTTQ 0.0060 0.0000 (0.00%) 79,777.00  
J.C. Penney Company, Inc. NYSE JCP 28.67 +1.55 (5.72%) 6.37B  
Kohl's Corporation NYSE KSS 44.39 +0.57 (1.30%) 13.53B  
Sears Holdings Corporation NASDAQ SHLD 61.20 +2.17 (3.68%) 7.46B  
Saks Incorporated NYSE SKS 4.93 +0.41 (9.07%) 696.94M  
Stage Stores, Inc. NYSE SSI 12.43 +1.01 (8.84%) 471.41M  
Wal-Mart Stores, Inc. NYSE WMT 50.10 +1.63 (3.36%) 196.03B



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