Tobacco Stocks Struggle As Tariff Easing Put Out Rally
The post Tobacco Stocks Struggle As Tariff Easing Put Out Rally appeared on BitcoinEthereumNews.com. Topline Left out of the recent stock market rebound as the U.S. and China took a step back in their trade war were big tobacco stocks, though American cigarette and tobacco companies remain a safe bet against tariff-driven shakiness and recession agita. Zyn maker Philip Morris International has not taken part in this week’s stock rally. Getty Images Key Facts Shares of the world’s three most valuable tobacco companies – Zyn nicotine pouch parent Philip Morris International, Marlboro’s U.S. rights holder Altria and Camel and Newport cigarette maker British American Tobacco – all declined Tuesday, furthering a recent slump for the sector as the broader U.S. market roared following a pause on the most severe tariffs between Beijing and Washington. Philip Morris and Altria stocks each declined more than 0.6% Tuesday, extending their decline over the last week to 6% apiece, while New York-listed shares of British American Tobacco dropped 0.7% to widen its weekly pullback to 9%. The S&P 500 benchmark rose almost 1% Tuesday and is up 5% over the last week, far better than the smoking giants. Altria and Philip Morris both rank among the S&P’s worst 25 performers over the last seven days, according to FactSet data. The London-based British American Tobacco is not an S&P constituent, but it would be the index’s fifth-worst performer. Why Are Tobacco Stocks Down? Altria, British American Tobacco and Philip Morris belong to a broader category of stocks known as consumer staples, a group of companies which sell products which are viewed as necessities by many consumers. Given the sticky demand, prevailing Wall Street wisdom suggests these stocks are a strong place to invest during times of economic uncertainty. The easing of tariff led investors to move away from such surefire bets and into riskier, higher-growth areas like technology and…
The post Tobacco Stocks Struggle As Tariff Easing Put Out Rally appeared on BitcoinEthereumNews.com.
Topline Left out of the recent stock market rebound as the U.S. and China took a step back in their trade war were big tobacco stocks, though American cigarette and tobacco companies remain a safe bet against tariff-driven shakiness and recession agita. Zyn maker Philip Morris International has not taken part in this week’s stock rally. Getty Images Key Facts Shares of the world’s three most valuable tobacco companies – Zyn nicotine pouch parent Philip Morris International, Marlboro’s U.S. rights holder Altria and Camel and Newport cigarette maker British American Tobacco – all declined Tuesday, furthering a recent slump for the sector as the broader U.S. market roared following a pause on the most severe tariffs between Beijing and Washington. Philip Morris and Altria stocks each declined more than 0.6% Tuesday, extending their decline over the last week to 6% apiece, while New York-listed shares of British American Tobacco dropped 0.7% to widen its weekly pullback to 9%. The S&P 500 benchmark rose almost 1% Tuesday and is up 5% over the last week, far better than the smoking giants. Altria and Philip Morris both rank among the S&P’s worst 25 performers over the last seven days, according to FactSet data. The London-based British American Tobacco is not an S&P constituent, but it would be the index’s fifth-worst performer. Why Are Tobacco Stocks Down? Altria, British American Tobacco and Philip Morris belong to a broader category of stocks known as consumer staples, a group of companies which sell products which are viewed as necessities by many consumers. Given the sticky demand, prevailing Wall Street wisdom suggests these stocks are a strong place to invest during times of economic uncertainty. The easing of tariff led investors to move away from such surefire bets and into riskier, higher-growth areas like technology and…
What's Your Reaction?
