Oil-sensitive stocks and companies relying on middle-class spending are getting crushed
Sometimes there’s a singular story driving the markets. With US benchmark crude oil prices topping $100 a barrel, Monday is one of those days.
Oil-sensitive stocks are getting clobbered, with airlines foremost among them. JetBlue, United Airlines, and Alaska Air are all tumbling.
But the pain is more widespread than that, with industries where oil prices are a major input, such as chemical manufacturers (Eastman Chemical), industrial machinery makers (Illinois Tool Works), and building products (Owens-Corning), also getting shellacked.
More ominous — economically speaking — is the performance of companies catering to America’s middle class, including Macy’s, Kohl’s, Best Buy, and Texas Roadhouse. The drop suggests that investors and traders expect the rising cost of fuel to eat away at disposable income, potentially setting the stage for an economic slowdown.
Some of the worst off on Monday are companies that are both fuel-sensitive and heavily reliant on middle-class consumers — a double whammy.
Cases in point: Carnival is getting creamed, and Clorox, a company that depends on slightly better-off Americans shelling out for its brand-name products, is also getting pummeled.
But the pain is more widespread than that, with industries where oil prices are a major input, such as chemical manufacturers (Eastman Chemical), industrial machinery makers (Illinois Tool Works), and building products (Owens-Corning), also getting shellacked.
More ominous — economically speaking — is the performance of companies catering to America’s middle class, including Macy’s, Kohl’s, Best Buy, and Texas Roadhouse. The drop suggests that investors and traders expect the rising cost of fuel to eat away at disposable income, potentially setting the stage for an economic slowdown.
Some of the worst off on Monday are companies that are both fuel-sensitive and heavily reliant on middle-class consumers — a double whammy.
Cases in point: Carnival is getting creamed, and Clorox, a company that depends on slightly better-off Americans shelling out for its brand-name products, is also getting pummeled.
