As the outlook for spending and inflation continues to show promise, consumer companies have witnessed a rise in their stock prices. Investors are eagerly awaiting the release of consumer-price inflation and producer-price inflation data from the Labor Department this week, along with retail-sales data from the Commerce Department.
According to J.D. Joyce, president of Houston financial advisory Joyce Wealth Management, the recent surge in oil and gasoline prices is expected to have an impact on inflation data in the coming months.
However, a brokerage firm has cautioned that volatility in cyclical sectors is likely to persist. Jason Draho, head of asset allocation Americas for money manager UBS Global Wealth Management, stated that they anticipate a cooling down of the economy towards the end of the year after the final blast of summer heat. Until there is more clarity regarding this transition, investors are likely to interpret data in both positive and negative ways, leading to erratic and range-bound prices across different asset classes.
In other market news, Amazon.com shares experienced a sharp rise, reaching their highest level in over a year. Analysts at Goldman Sachs have suggested that the online megastore’s potential in artificial intelligence is undervalued.
Additionally, Hostess Brands has witnessed a rally in its stock price after J.M. Smucker, the renowned jam maker, announced its plans to acquire the Twinkies owner for approximately $4.6 billion.
On the other hand, Bowlero shares suffered a decline as the chain of bowling alleys reported a decrease in fourth-quarter sales. Meanwhile, clothing retailer Soft Surroundings has filed for bankruptcy and intends to close all of its 44 leased stores. It also plans to sell its online and catalog business to Coldwater Creek.