A customer holds 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
An influx of money to many low to moderate income families as part of Covid-19’s $ 1.9 trillion aid package is expected to raise several consumer stocks in the coming months, according to Cowen.
The broker believes that stimulus checks and a dramatic expansion of child tax credit will flow through the U.S. economy and supply business in a wide range of sectors, from airlines and hospitality to clothing and marijuana retail.
“We see evidence of increased consumer spending, mainly driven by $ 1,400 incremental stimulus checks,” wrote a team of Cowen analysts on Friday. “In all consumer industries, these pent-up demand indicators are expected to translate into short-term spending (particularly among families most impacted by COVID-19) and provide another leg of growth.”