Shares of retailers and other consumer companies rose amid optimism about the outlook for U.S. spending growth.
Investors are debating whether recent spending increases will persist after stimulus checks cease to be issued by the U.S. government. Economists at brokerage Bank of America Securities argue that the spending growth is more than a temporary "sugar high." The explosion in consumer spending is here as the one-two punch of the stimulus and reopening sets off a spending spree," said the Bank of America economists, in a note to clients.
"The question is what happens after? We expect a moderation in growth but for the recovery to prove sustainable. The key will be a smooth handoff from public to private-supported demand."
Warehouse club BJ's Wholesale Club Holdings shares fell after it said its chief executive and president, Lee Delaney, had died unexpectedly at the age of 49.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-09-21 1701ET
