Consumer Cos. Up, But not by Much, Amid Lackluster Sales Growth -- Consumer Roundup
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Consumer companies rose, but not by as much as the broad market, amid lackluster retail sales growth.
Retail sales rose 0.2% in February, short of the average economist target of 0.6%.
"Retail sales were...strong enough to show the consumer isn't crashing, and they're weak enough to cause one to think the Fed might act, at least eventually," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
The data came in a sweet spot for traders hoping the Fed will have leeway to cut rates before a full-scale recession sets in, the strategist said.
"Some of the weakness was there, without it being too harsh," said Joyce.
PepsiCo agreed to acquire prebiotic soda brand Poppi for $1.95 billion, adding a drink with claims that it is good for the gut amid a soda backlash, led by Health and Human Services Secretary Robert F. Kennedy Jr.
America's biggest retailers, including Walmart and Amazon, are deploying every weapon they have to navigate President Trump's fast-escalating trade war, from leaning on suppliers for discounts to finding alternate product sources and raising prices. Fears that the consumer will balk at the impact of tariffs on goods prices have weighed on the discretionary sector.
Youth-oriented retailer Forever 21 filed for bankruptcy protection.
"Was it something idiosyncratic about their business model, or is it something larger, with brick and mortar do you really need to go to the mall when you can order everything online?" said Joyce.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-17-25 1716ET