Consumer Cos Up On Covid-19 Treatment Hopes -- Consumer Roundup
|07/10/2020 | 05:30pm|
Shares of retailers and other consumer companies rose amid hopes for effective Covid-19 treatments.
American Airlines rose after reports that executives told their Boeing counterparts in recent weeks they didn't have sufficient financing for some of their 737 MAX orders and would have to cancel them unless Boeing helped secure funding for the jets, The Wall Street Journal reported.
Cruiseline Carnival rallied after it unveiled plans to reduce its fleet by 13 ships, or nearly 9% of its capacity, as the cruise giant adjusts to an industry transformed in devastating fashion by the Covid-19 pandemic.
One strategist said travel-oriented companies also received a lift from promising developments on coronavirus treatments.
"When you have a positive announcement regarding vavine helps underpin sectors that would benefit from the delivery of vaccines -- look at hotels, look at airlines, look at Walt Disney," said Quincy Krosby, chief market strategist at Prudential Financial.
One money manager said the upheaval to the education system from Covid-19 would not necessarily slow discretionary education spending.
"While back-to-school will mean something very different this year, consumers still plan to do back-to-school shopping," said analysts at money manager UBS Global Asset Management, in a blog post.
"According to a recent report by Deloitte, spending will likely remain flat at $28.1 billion for kindergarten through 12th grade students, which equates to roughly $529 per student."
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