Shares of retailers and other consumer companies rose amid optimism on the outlook for consumer spending.
"Underappreciated tax benefits and a robust spending funnel" should lift the share prices of hardware and broadline chain stores, said analysts at brokerage Morgan Stanley, in a research note. "We see further upside from the tax windfall. Lower tax rates should lift Hardline/Broadline earnings by an estimated 15% in 2018 (including reinvestment)."
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Morgan Stanley analysts warned that department and clothing stores could remain under pressure despite a boost from the tax bill.
Rob Curran, email@example.com
(END) Dow Jones Newswires
January 17, 2018 17:14 ET (22:14 GMT)