Consumers Spending Stimulus Checks Will Boost Airlines, Cannabis, And These Other Actions, Cowen Says


A customer holds an American Eagle Outfitters Inc. shopping bag while waiting in line to complete a transaction at a store in San Francisco, California, the United States, on Wednesday, March 6, 2013.

Bloomberg

An influx of cash to many low-to-moderate income households as part of the $ 1.9 trillion Covid-19 relief package is expected to boost various consumer stocks in the coming months, according to Cowen.

The brokerage believes that stimulus controls and a dramatic expansion of the child tax credit will flow through the US economy and fuel business in a wide range of industries, from airlines and hospitality to clothing retailing and cannabis. .

“We see evidence of higher consumer spending, primarily driven by incremental stimulus controls of $ 1,400,” wrote a team of Cowen analysts on Friday. “Across consumer industries, these stifled demand indicators should translate into short-term spending (particularly among households hardest hit by COVID-19) and provide another stage of growth.”

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