With consumer spending accounting for about 70% of the U.S, economy, “Black Friday”, the start of the holiday shopping season, is a significant event to evaluate. While the media focused on pre-dawn openings at stores such as Best Buy Co. Inc. (US: BBY), Target Corp. (US: TGT), Macys, Inc. (US: M) and Wal-Mart Stores, Inc. (US: WMT), analysts are also assessing the “Cyber Monday” effect, which incorporates the impact of on-line sales.
MY TAKE: The U.S. Commerce Department reported that third quarter consumer spending increased at a 2.8 percent annual rate, the strongest since 2006. As a result, positive holiday sales would likely be well received by investors. However, holiday sales are one among many factors that determine the short-term tone of the global investment landscape.