Why TJX Stock Is Making All-Time Highs

NYSE: TJX | TJX Companies, Inc. (The)  News, Ratings, and Charts

The markets are headed for a down week, in spite of positive news on the vaccine front. The economy is expected to receive a boost from from the population getting vaccinated, but in the meantime, consider retailers such as TJX Companies, Inc. (TJX), in anticipation of a strong holiday quarter.

The markets continue to face uncertainty as virus cases surge and lawmakers remain deadlocked in negotiations for the latest stimulus bill. Stocks are finishing the week down, even after the Pfizer (PFE) and BioNTech (BNTX) vaccine received the backing of an advisory committee of the Food and Drug Administration (FDA).

This sideways trading for the overall market is likely to continue into the new year until a stimulus bill is passed, and there is a clear path for vaccinations. One area of the market where I see positive sentiment is retail, where I forecast a strong holiday season this year. Investors should take a look at TJX Companies, Inc. (TJX - Get Rating), a discount retailer with a solid e-commerce platform.

But first, let’s take a look at the markets over the past few days; then, I will provide more insight into TJX.

Market Commentary

Stocks were mainly lower Friday as the prospect of another stimulus bill is looking bleak. Senate Majority Leader Mitch McConnell and other Republicans are adamant about including protections that would shield companies from virus-related lawsuits, a non-starter for Democrats. McConnell also wants to drop aid for state and local governments. As of mid-day, the S&P 500 and Nasdaq Composite Index were down about 50 basis points.

On the economic front, producer prices rose 0.1% in November, after climbing 0.3% in the previous month. The core prices (ex-food and energy) increased by 0.1% month-over-month and 1.4% year-over-year. On Thursday, weekly initial jobless claims rose to 853,000, which was more than expected. The consumer price index (CPI) increased by 0.2% in November, with the core figure up 1.6%. Stocks finished mixed on the day.

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