Strong retail sales

Morning News of Note:

• GOOG EBAY: GOOGLE NEARS PAYPAL MODEL A week after it moved to establish a new database listing service that could compete with eBay, Internet darling Google looks like it's getting closer to building an online payment system that would make it a Web commerce juggernaut. While the company says Google Base represents an effort to test "a new way for content owners to submit their content," whispers of a Google commerce plan has analysts and Web watchers buzzing (Full Story) NY Post
• CHS: Chicos FAS Inc-CHS reports Oct SSS up 17.9% vs consensus for up 9.7%: CHS says that Q3 sales were $359M vs consensus estimates of $353.66M.
• WMT: Wal-Mart Stores-WMT reports October SSS up 4.3% vs consensus for up 3.8%: Sees Novemeber SSS up 3%-5%.
• US Economy: MNST Oct online employment index 143 vs 140 in Sept, new all time high, first increase since Apr

Market Comments: Most of the retail sales reports came in much stronger than expected. I see lots of stocks popping on the news (CHS, URBN, KSS, CTRN, etc.). ELOS reported a great quarter, and that stock is up nicely also. Chip stocks are up the most, as a group, followed by housing stocks. Banks and brokers are down in early trading.

Interest rates are up a bit, and that's pressuring the yield plays (REITs, utilities).

long ELOS, GOOG, KSS, URBN, WMT