Consumer companies are experiencing a significant boost in the wake of strong inflation data, indicating that spending has remained robust. The SPDR Select Sector Consumer exchange-traded fund, which comprises a collection of retailers and other consumer-service companies, has witnessed a 0.5% increase and has risen by a staggering 34% in 2023.
Airlines Face Turbulence due to Labor Contracts
Airline shares, however, have taken a hit as concerns mount over new salary contracts with pilots and their potential impact on earnings. Following its reduced earnings projection, American Airlines saw its shares decline. The airline attributed this to a new labor contract with a pilots’ union and escalating fuel prices. United Airlines, having also entered into a similar agreement, experienced a sharp decline in their share value.
North West Soars with Dividend Increase
North West’s shares, on the other hand, experienced a rally after the Canadian retailer raised its dividend following an impressive 18% rise in earnings for the latest quarter.
MGM Resorts International Struggles with Cybersecurity Incident
The recent cybersecurity incident that compelled MGM Resorts International to shut down certain computer systems continues to disrupt play on some of its gambling machines.
Cracker Barrel Old Country Store Faces Revenue Decline
Casual-dining and gift-shop chain Cracker Barrel Old Country Store suffered a blow with a sharp drop in second-quarter revenue. Its struggle to appeal to a younger generation is evident in this decline.