Green Monday a Sign of Economic Recovery?

The U.S. shipping companies are seeing a busier Green Monday than year ago. This could be an indicator that the positive shopping trend that started before Black Friday is carrying on throughout the holiday season. FedEx FDX spokesperson told Benzinga that is expecting to ship 17 million packages today, which is a 10 percent increase from last year. This is twice as much as the normal daily volume. The increased shipping volume could signal that the online retailers, such as Amazon AMZN, eBay EBAY, and Overstock.com OSTK are experiencing increased sales. On the other hand, if the higher shipping rates are a result of consumers changing their buying habits from offline to online environment, this can be a negative indicator for retailers who rely mainly on in-store sales. Overall, the higher shipping rates could be an economic indicator showing that the American consumers are ready to spend again. The recent employment data has been cautiously optimistic, for instance, the latest unemployment rate was 8.4%. This is the first time since March that the unemployment rate falls below 9%. ACTION ITEMS: Bullish: The traders who believe that the increase in the shipments is a positive indicator for online retailers might want to go long Amazon, Overstock.com, or eBay. Bearish: The traders who think that increased Green Monday shipping volume indicates that the consumers changing their buying habits to the online environment may want to short companies that rely strongly on in-store sales. Best Buy BBY is an example of a company that might suffer from this trend. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.