The selloff is “clearly an ongoing reaction from Walmart’s comments,” said Bruno Monteyne, an analyst at Bernstein.
To be sure, consumer stocks have been falling for some time, especially as inflation squeezes household incomes. The industry also tends to pay hefty dividends that look less appealing for investors compared with 5% interest at money market funds. A measure of food, beverage and tobacco stocks in the Stoxx 600 is trading at the lowest in two-and-a-half years.
The trend is similar in the US. Consumer staples are the third-worst performing among S&P 500 sectors so far this quarter and the group, which includes the likes of Walmart, Mondelez International Inc. and Pepsico Inc., has dropped 9.1% this year.
Given the rapid popularity of this new class of weight-loss drugs and an early warning from one of the biggest retailers, it’s been enough to spark another around of selling. A recent survey conducted by Morgan Stanley found that patients tended to cut back on meals and snacks while taking weight loss drugs, and also consumed less alcohol and carbonated drinks.
I do find it funny that they attribute the change to people using a drug vs. people either not choosing to spend their less valuable money on the expensive junk food or simply choosing to be healthier.
It's not like various diet programs that eliminate junk food weren't already immensely many popular years ago.
LOL....If you listen to the disclaimers for one of those drugs they hammer constantly, Taint Rot is one of the many side effects. I just couldn't remember which drug.
