But seasonal merchandise was below plan, she said. Kohl's merchandise mix is dominated by apparel, and the stores were stocked early for spring, Henderson said. On Wall Street, the market recovered from moderate losses earlier in the session, and analysts attributed its resilience to optimism that the Federal Reserve will lower interest rates for a fourth time this year when it meets May 15. Most economists believe the economy managed some growth during the first three months of 2001. Given that the economy was booming in the first half of last year, the swiftness of the slowdown has jolted many Americans.
People see a bear market, layoff announcements, earnings warnings.
Some economists were more upbeat. Instead, they may represent the bottom of a cycle, he said, pointing to several encouraging signs. Consumers are likely to pick up spending in coming months because they are being relieved of high heating bills. They may soon get the benefit of a retroactive federal tax cut and more money in their pockets because of refinancing of mortgages. They continue to buy automobiles at an astonishing pace.