On top of CSCO WMT also reported a terrible quarter. In addition jobless claims are at 6 year low and inflation is up. So in addition to CSCO + WMT failure you get tapering fears.
I own some Chinese stocks. They reported fantastic earnings just several days ago. Still sold off 8%-12%.
Interest rates again went up. And I guess that those on margins and credit cards debts got spooked again by these events. They started raising funds in panic to close margin/ credit card debt. And no matter how good certain stocks are they are just a source of funds for them. Nothing is spared.
I expect the action to get quite already on Monday the same fashion all ended in 2-3 days after similar fears in May and June.
I don't think two many KORS customers are regular WMT shoppers. I may be wrong but most KORS customers have disposable income and not worried about credit card rates either. I don't think margin rates have changed have they? As far as that goes, credit card rates don't change monthly either? Just seems to be the herd listening to the talking heads about the Fed. KORS in a trading range with growth story still intact. Stores are busy, shelves well stocked, sales force well trained, product looks good and registers look busy. I think there are plenty of buyers waiting for a little drop in KORS share price.
The dips have been bought during this bull run. We shall see this time. The fed talk is just an excuse to sell. That stuff is just noise. Ben Bernanke has been clear that he is not pulling off the gas until the economy improves and unemployment reaches 6.5%! This is macro noise.
KORS is taking market share and will report another stellar quarter in November...