Last week, there was a shift in the stock market. Once beloved Internet stocks Facebook (FB) and Twitter (TWTR) fell hard after each reported poor quarterly results.
Although these are considered more Internet stocks than software ones, I think software stocks are often bunched in with Internet names, and the weakening of these two names will cause investors to be cautious.
Meanwhile in retail, things are humming right along. GDP is growing at 4% and people are spending their cash. Retailers in the U.S. benefit from a rising dollar, as it makes merchandise from overseas cheaper to buy — which means more profits.
My favorite retailers include Home Depot (HD), Ollie’s Bargain Outlet (OLLI), kids toy store Five Below (FIVE), beauty supply store Ulta Beauty (ULTA), as well as off-price clothing retailers TJX (TJX) and Ross Stores (ROST).
