Consumer costs down after soaring oil prices – Consumers review

Shares of retailers and other consumer companies fell as soaring oil prices rekindled concerns about stagflation.

Southwest Airlines shares fell after the low-cost carrier canceled hundreds of flights on Monday as a weekend meltdown sparked by bad weather in Florida and air traffic control issues lingered into the week .

Goldman Sachs strategists have said that periods of stagflation such as the current era have historically weighed on the broader stock market and caused a split in the performance of consumer companies.

“During these periods of stagflation, falling profit margins and rising interest rates have reduced the median quarterly real total return of the S&P 500,” brokerage firm Goldman Sachs said in a note to clients. . “The real wealth of households has stagnated. Consumer spending habits have boosted the performance of consumer service firms relative to firms selling goods. ”

Hasbro’s abrupt change in leadership this week leaves the toy company in the hands of lieutenants to navigate sales strategies and supply chain challenges during a pivotal time of the year.

 Write to Rob Curran at [email protected] 

(END) Dow Jones Newswires

October 11, 2021 17:02 ET (21:02 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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