Consumer Companies Higher on Spending Optimism -- Consumer Roundup

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)."

Morgan Stanley analysts warned that department and clothing stores could remain under pressure despite a boost from the tax bill.

Rob Curran,

(END) Dow Jones Newswires

January 17, 2018 17:14 ET (22:14 GMT)