A customer owns a shopping bag American Eagle Outfitters Inc. while waiting in line to make a transaction at a store in San Francisco, California, USA, Wednesday, March 6, 2013.
Bloomberg
A cash inflow to many low- to moderate-income households as part of the $ 1.9 trillion Covid-19 aid package is expected to raise more consumer stocks in the next few months, according to Cowen.
The brokerage believes that stimulus controls and a dramatic expansion of children’s tax credit will flow through the US economy and fuel the business in a wide range of industries, from airlines and hospitality to clothing and cannabis retail.
“We see evidence of rising consumer spending, driven by $ 1,400 stimulus,” a team of Cowen analysts wrote on Friday. “In all consumer industries, these accumulated demand indicators should translate into short-term spending (especially among the households most affected by COVID-19) and provide another stage of growth.”