*This blog post is my personal opinion only and contains affiliate/referral links.
It’s been over a month since i published “What is your stock shopping list?”, and today i like to revisit the post and check how these five stock industries have fared in the Stock Market. The hardest hit five stock industries again are 1) Airline 2) Travel, 3) Energy 4) Restaurant and 5) Consumer Products.
That was my second blog post too. I started this blog on March 14 as a way to fill my quarantine time and it’s been a learning experience so far.
I’m looking at two big airline stocks right now, Delta and American Airlines, and i’m seeing that the price per share is down on both stocks. From March 16 to today, Delta is $11 short from the $35 price, and American is at $11 today from a $14 high. Despite benefiting from the CARES Act rescue bill, it’s too early to tell when the recovery will kick in as air travel is still limited at this time.
Travel industry is directly correlated to airline stocks, but i like to focus on a giant travel booking agency which everybody has heard of – Expedia. Whether you book for flight, cruise, hotel, car rental and others, this is the starting point of travel planning, but i don’t think its a good barometer to measure the optimism in the travel industry right now. Having said that, there’s good news on its stock performance because Expedia climbs from $54 to $71.
The biggest news on the Energy market in the month of April is the plunge of the oil trading to below zero. Why? Because there is so much unused oil while the economy is on a standstill. That historic day was April 19. If we look at the monthly performance, we can see though that the energy sector has rebounded from $162 to $275 according to S&P 500 Energy Sector. I think it is fair to say that oil prices is just one factor that is driving the energy stocks to a slow rebound.
An April 17 record from Yardeni Research states that Restaurants are down 10.2% year to date. It’s a valid point because people are homecooking more. With no customers to serve and restaurants closed for business, some restaurateurs are even closing down for good despite the Small Business relief bill from the government. Tracking the S&P 500 Restaurant Sub Index $SUHB, we can see a leap from $1095 to $1732, again there are indicators that businesses may reopen soon and these are driving the performance up.
Ok the list won’t be complete without the consumer sector and what better to represent this than the monster marketplace Amazon. It was a tough time for the public consumer last March; people were losing jobs (still are) and were worried how they will pay their daily expenses. Thanks to the stimulus check and unemployment benefit, people has something to tide things over. This may not be the only reason for the spike in Amazon shares, $1688 to $2351, but i think online shopping is ever more popular these days because of the social distancing restriction.
In full disclosure, i hold some stock positions on the Consumer, Energy and Biotech Sectors at Robinhood, and my plan is to hold on to them until the economy is normal again, hopefully with a little profit for my patience and foresight.
Thank you for reading.
Please feel free to share some of your investment in the last month.