Consumer Stocks Like (BBBY)(SBUX) Look Vulnerable

With the economy looking eerily like it did in the worst part of the recession, and shares in consumer stocks like Starbucks Corp. (NASDAQ:SBUX) and Bed Bath & Beyond Inc. (NASDAQ:BBBY) closing in on, or at, all-time highs, it's questionable as to where they can go from here, other than down.

Anything connected to consumer spending, especially beyond essential needs, will come under pressure if oil and gas prices remain high, or grow even higher.

Credit Suisse (NYSE:CS) wrote, "We believe the sharp increase in oil prices we have witnessed will translate into a meaningful underperformance of consumer discretionary stocks, as in 2004-2006."

Morgan Stanley (NYSE:MS) also says consumer discretionary firms are among its least favored sectors.

The major question yet to be answered is whether or not increased spending on gasoline has started to cut into consumer spending at restaurants, clothing stores, and other types of consumer goods or services.

Starbucks closed Thursday at $37.97, gaining $3.43, or 9.93 percent.