The Market's Next Likely Catalyst: Holiday Sales [Video]

Stock marketThe market enters the week looking to reverse its biggest slide in three months, but a second week of churning would hardly be a surprise, says Jason Weisberg, managing director at Seaport Securities. What's more interesting to Weisberg is that Black Friday is fast approaching, and so naturally traders are already keying on holiday sales as the next potential catalyst to propel stocks on to strong year-end gains.


The week's economic news -- including leading indicators, inflation, retail sales, production and business inventories -- isn't nearly so important as the slew of retail earnings and outlooks hitting the market. Wal-Mart (WMT), Target (TGT), Gap (GPS) and Sears (SHLD) are just a few of the retailers reporting third-quarter results in the days ahead.

"The market's entitled to take a breather," Weisberg says. "We're up some 2,000 points on the Dow since the July low. It's OK to take a break." What really matters, notes Weisberg, is a strong holiday selling season. That could pole-vault the market to new highs, making Dow 12,000 by year-end well within reach, he says.

"The meaty data point that everyone will be looking at next is holiday sales," Weisberg says. "Not because so much of how Target or Wal-Mart is going to do in the next 12 months, but as a true gauge of whether consumer spending is back."

For more on Weisberg's view from the floor of the New York Stock Exchange (NYX), see the video above.


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maa2626

How sad, our next big test economically as a nation is how much "stuff" we buy for christmas. Not, what we manufacture, not how we are going to pay down the debt, not how we are going to afford MarxCare, not how we are going to cut entitlements. It is based (the next big test and what you can buy in stores) on what is IMPORTED from one of our biggest creditors, China. For this Christmas we plan to either make, shop at antique or consignment stores. Also will be supporting LOCAL charities and food banks

November 16 2010 at 7:31 AM Report abuse rate up rate down Reply
punnster

To think that Wall Street is an indicator of our economy is like thinking clothes are an indication of character.

November 15 2010 at 3:02 PM Report abuse rate up rate down Reply
erink91321

DONT BET ON THIS

November 15 2010 at 10:46 AM Report abuse rate up rate down Reply
Robert & Lisa

With what money are we the people going to spend this holiday season? Thanks Obama and thugs, the George Soros puppets.

November 15 2010 at 10:09 AM Report abuse -1 rate up rate down Reply
1 reply to Robert & Lisa's comment
wfreeberg

You might be surprized, this year may be bigger than last. All the stores are crowded already.

November 15 2010 at 12:10 PM Report abuse rate up rate down Reply