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