Shares of retailers and other consumer companies rallied as hopes for a Covid-19 vaccine gave new life to travel, restaurant and hospitality shares.
The US Global Jets exchange-traded fund, a basket of the largest air carriers, rose by more than 15%. "We know neither the timing to broad availability of a vaccine nor the expected duration of protection," said strategists at brokerage Jefferies, in a note to clients.
"However, sales and earnings estimates have already been on the rise, and even an incremental uptick in 'normal' consumer behavior is likely to have profound implications."
Hoteliers and cruiselines, whose businesses were also devastated by the pandemic were also among the biggest gainers.
"Notable beneficiaries include a wide variety of retailers, restaurants and leisure space players," said strategists at brokerage Jefferies, in a note to clients. The strategists singled out Las Vegas casino operator Caesars Entertainment, casual-food chain company Brinker International, discount retailer TJX and others.
Among consumer staples companies, the Jefferies strategists named Coca-Cola among the likely beneficiaries because of its extensive business supplying restaurants.
On the flip side, shares of bleach maker Clorox, an investor favorite during the depths of the pandemic, fell sharply.
Beyond Meat shares initially surged after reports that McDonald's would launch a McPlant veggie burger, stemming from a partnership with the "fake meat" maker. Beyond Meat gave back those gains ahead of its earnings report, due after the bell.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
11-09-20 1734ET
