Trade of the Day: Macy’s Inc (NYSE:M)

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Macy’s Inc (NYSE:M) has been struggling since mid-2015, and following the weak GDP numbers we saw in April coupled with the continued underperformance of large malls across the country, we don’t anticipate that struggle is going to end this quarter.

M is scheduled to release its quarterly earnings on Thursday, May 11, before market open, and we expect the numbers to be underwhelming. Consumer spending is down as consumer savings rates continue to rise, M is desperately trying to cut dead weight by closing key stores across the country, and Amazon.com, Inc. (NASDAQ:AMZN) plans to continue disrupting the sector by opening physical locations and increasing its clothing and furniture sales. Things don’t look good for department stores.

We are looking for M to break out of the consolidation range it has been in for the past month and drop back down past its recent lows of $27.72 as the stock continues its long-term downtrend.

‘Buy to open’ the M June 28 Puts (M170616P00028000) for a maximum price of $1.15.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/05/trade-day-macys-inc-nyse-m/.

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