Media stocks are undergoing a de-rating, led by the heavyweight S&P movies & entertainment index. Sales prospects have been undercut by shifting viewing habits, which is creating uncertainty surrounding the value of network…

Homebuilders have been caught up in broad consumer discretionary sector weakness, but we expect differentiation to soon materialize. Housing starts are picking up steam (bottom panel) and are still trailing household formation,…

The latest National Association of Restaurant survey showed a sharp slowdown in activity, with same store sales contracting for the first time in years. This is not an aberration. Despite rising real disposable incomes, consumers are…

Stronger-than-expected profit results have propelled the S&P leisure products group higher in recent trading sessions. Despite the sharp gains that have already accrued, we continue to see meaningful upside potential. Positioning…

Deflationary pressures in the media space as a result of cord cutting and changing consumer consumption habits are undermining profit prospects. To make matters worse, the service sector is closing the gap with the weakening…

The S&P hotels index is breaking down. The era of cheap financing costs spurred a multiyear lodging industry construction binge, creating a backlog of new capacity likely to hit markets for some time to come. In the interim, there…

Yesterday's Weekly Report showed a table of sector operating margins relative to their long-term average, as well as price/sales ratios. Expensive sectors with above average margins appear particularly vulnerable in an environment…

An oversold bounce may be getting underway, but without a policy assist, it would be a rally to sell. Go to neutral in the growth vs. value trade and beware sub-surface weakness in the consumer discretionary sector.