In Retail-Sector Stocks, Don't Buy Wholesale
Author: Kelly Evans</br></br>Retail stocks are starting to mount a comeback. But investors shouldn't expect the rally to last.</br></br>The S&P Retail Index is up nearly 8% from its early July lows, amid some hopeful data from retailers. On Wednesday, for example, Macy's Inc. is expected to turn in solid second-quarter results. The department-store chain has already reported that sales at stores open a year or more posted year-on-year gains of 7.3% in July and 4.9% for the quarter as a whole.</br></br>And on Friday, the Commerce Department is expected to say retail sales rebounded to gain 0.4% in July after slipping in May and June. That would put sales up by about 5.4% since July 2009.</br></br>This is all reassuring for investors. Moreover, the Federal Reserve's signal Tuesday that it would keep interest rates at near-zero levels and purchase government debt to stimulate the economy should be a favorable backdrop for cyclical sectors like retail.