Shares of retailers and other consumer companies fell as a hedge-fund blowup caused a retreat from risk.
"As demand comes roaring back, the market is likely to witness supply shortages," which could lead to higher costs or even lower sales volumes, said strategists at brokerage Morgan Stanley, in a note to clients, cutting their view of the consumer discretionary sector to underweight.
The outperformance of cyclical stocks such as consumer discretionary and small caps is showing some signs of slowing recently, according to the Morgan Stanley strategists.
British online car retailer Cazoo Holdings said it would go public through a deal with a blank-check company that values the combined entity at $8.1 billion, as it capitalizes on a shift to online car buying during the pandemic.
Distressed-debt investor Monarch Alternative Capital is betting roughly $600 million in three bankruptcy cases that the travel industry will bounce back from the coronavirus pandemic, with investments in hotels and in retail space in a New York bus station.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-29-21 1708ET
