Will Retail Stocks Face a Day of Reckoning?

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Dec. 26 (Bloomberg) -- On today's "The Agenda," WSL Strategic CEO Wendy Liebmann , Michael McKee, Scarlet Fu and Adam Johnson look at trending news stories on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

What is on your agenda this morning?

I will watch the economy, but we will not pay any attention to it -- we don't want anybody us to pay attention to it.

Jobless claims coming up.

The labor department says the number is not good.

They cannot seasonally adjust because the holidays move around.

Not the same day of the week or time period each year.

So during the holiday season the numbers are basically useless.

We have seen jobless claims go up.

The forecast as they will drop a little bit so nobody knows what they are.

So ignore the numbers are ignoring jobless claims at 8:30 a.m., done.

Adam?

Retail -- wendy liebman, our special guest host this retail day -- the retail sector, stocks are up about 42% so far this year.

Which, if you compare it to the other 10 industry groups, it is the best out there.

And yet you talk about all the discounting.

60%, 75% -- how sustainable is all of this?

We are showing the viewers on tv anyway some of the data, and for those on radio, suffice it to say, no sale on the retail stocks in spite of the fact there are plenty of sales in the stores.

How sustainable is that kind of share outperformance, given the fact we're seeing the discounts?

The discounts have become so much of a part of the u.s. retail sales marketing approach, we just expected now.

Retailers build into their plans, especially this time of year.

They are figuring out they've got to get people in the stores this time of year or lose them altogether.

For the most part, it is built into their overall strategy.

Can you justify stocks up 42% -- i mean, these are the steepest discount since 2009. that has to be a moment of reckoning's in upcoming earnings.

This has been the christmas where you really have seen the impact of the internet, both the traditional retailers and the -- pure play.

That will put things -- it will be a big challenge moving into the new year.

I am looking at the shippers.

A ups, fedex, the shipping companies, primarily ups, missing some christmas delivery targets this year because of a last-minute surge in online purchase orders.

Some kids did not get their christmas presents under the tree christmas morning.

We know a couple of retailers like amazon have backtracked and offering gift cards, refunds on sipping -- shipping charges.

Ups is not trading on the premarket and fedex is opening a little higher.

You are doing some brick-and-mortar shopping.

But there's an interesting story -- adam and i were talking about this early.

A marriage rate -- ameritrade, the stock going for $30 and somebody hit 100 and $30. the trade has been canceled.

Somebody a little too early for the eggnog.

So, if you see a strange stock price for ameritrade.

It's the young kids on the trading desk.

The bosses are not working.

We want to thank our guest host, richard falkenrath, bloomberg contributing editor and former white house security adviser, and wendy liebman, ceo and chief shopper at wsl strategic, giving context and

This text has been automatically generated. It may not be 100% accurate.

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