A customer has a shopping bag from American Eagle Outfitters Inc. while waiting in line on Wednesday, March 6, 2013 to make a transaction at a store in San Francisco, California, USA.
Bloomberg
According to Cowen, an influx of cash to many low-to-middle-income households as part of the $ 1.9 trillion Covid-19 aid package is expected to increase several consumer stocks in the coming months.
The brokerage believes incentive controls and a dramatic expansion of child tax credit will flow through the U.S. economy, boosting activity in a wide variety of industries, from airlines and hospitality to clothing stores and cannabis.
“We see evidence of increased consumer spending driven by incremental $ 1,400 incentive controls,” a team of Cowen analysts wrote Friday. “In all consumer industries, these pent-up demand indicators should translate into short-term expenditures (especially among households most affected by COVID-19) and provide a new growth leg.”