WMT will sink if the SP turns down

Discussion in 'Trading' started by Daal, Aug 30, 2007.

  1. Daal

    Daal

    classic relative strength, it cant rally with the index
     
  2. S2007S

    S2007S

    AAPL and RIMM helping NDX while the dow loses ground due to WMT.
     
  3. Div_Arb

    Div_Arb

    Maybe this has something to do with WMT being down? Alot of bizzalls for the MS analyst to downgrade the largest retailer in the country! Kind of sends a message, eh?!

    --------------------------------

    Out of the Gate: Wal-Mart Cut to "Sell"
    Thursday August 30, 10:25 am ET
    Merrill Lynch Downgrades Wal-Mart Stores to "Sell" - Reports


    NEW YORK (AP) -- Shares of Wal-Mart Stores Inc. fell after the opening bell Thursday after Merrill Lynch reportedly downgraded the world's largest retailer to "Sell."
    The Dow Jones industrial average component was down 87 cents, or 2 percent, to $43.33 in morning trading.

    According to multiple media reports, the brokerage cut its rating on the shares from "Neutral," citing concerns that profit margins are eroding at its U.S. stores as the economy slows. A Merrill spokeswoman would not confirm the rating change, and said they do not release their equity research to the media.

    When it reported second-quarter results earlier this month, Bentonville, Ark.-based Wal-Mart cut its profit forecast for the full year. And when it released sales figures for July, the retailer posted a slim gain but warned that increased discounting is hurting profit margins
     
  4. Daal

    Daal

    yeah, this should keep wmt weak the whole day but the indexes need to turn down to make wmt a good short for today