Out Fox The $treet

In a surprising turn of events on Monday, Sears Holdings Corporation (NASDAQ: SHLD ) investors completely ignored the surprising earnings guidance in favor of the news regarding the CEO leaving. The company reported that earnings would smash the analyst estimates of $0.86, but the market focused more on the replacement of the CEO due to family health issues. The stock plunged 6.4% on Tuesday as investors became concerned that more » Disclosure: Long SHLD. Please review the disclaimer page for more details. 

Last week, the market presented some major signs of the beginning stage of a recovery in the construction sector. First, railroad shipments of lumber and crushed stone increased dramatically. Second, PPG Industries (PPG) reported blowout earnings in part due to a recovery in the US construction market. While most construction related stocks have already had a run, most are no where near multi year highs. Several options exist for playing the construction recovery. The main debate is whether to focus on US based companies that will benefit solely from the rebound in US construction or globally based companies that will benefit from the largest two economies (US and China) rebounding at the same time. Read the full article at Seeking Alpha. Disclosure: Long ANR, FCX, SHLD, and TEX. Please review the disclaimer page for more details. 

Sears Holdings (SHLD) is down 5% today after disappointing results from appliance maker Whirlpool (WHR). Maybe logical if investing in Sears a decade ago, but the current ramp in the stock price has more to do with the potential leasing of unused retail space and the externalizing of brands. SHLD had been on a huge run since bottoming below $52 in late September so a pause at $82.50 isn't that shocking. It just took a little negative news for traders to jump ship. Nothing that alarming since SHLD should not be owned based on whether Kenmore appliances are selling well. SHLD will likely see some follow through weakness next week. The key will be holding the 10ema around $75.30. Details from WHR press release: Third-Quarter Consolidated Revenue up 2%  EPS of $2.27 Versus $1.02 in Prior-Year Period  Company Announces Major Cost Reduction Initiatives to Support Margin Expansion and Strengthen Global Competitive Position  "During the quarter, we experienced...

With  news  last week that Sears Holdings ( SHLD ) would be selling Craftsman tools in Costco ( COST ) stores, Eddie Lampert has hopefully ushered in the era of breaking away from a retail store based operation. Ever since Lampert bought Sears and Kmart, investors have been looking forward to the day that the company would focus more on selling the brands worldwide and monetizing the massive real estate assets versus focusing on a dying retail operation that seems utterly lost. Read the full article at Seeking Alpha.  Disclosure: Long SHLD. Please review the disclaimer page for more details.