’Tis the Season

(1) Glad tidings for retailers as post-election cheer spreads to consumers. (2) Jackie interviews retail research pro Craig Johnson, who sees 4.5% y/y holiday sales growth. (3) Cyber and off-price retailers have more reason to rejoice than mall retailers. (4) Hot categories include health and beauty, consumer electronics, and jewelry. (5) S&P 500 Consumer Discretionary sector may lift in line with earnings, despite historically high P/E. (6) Potential dark cloud looming: import taxation. (7) Despite rally, S&P 500 forward P/E has barely budged vs a year ago. (8) Energy tops lists of S&P sectors with the best growth forecasts (revenue & earnings), most improved P/E vs a year ago, and least inflated P/E relative to earnings growth. (9) Financials still attractive to us.