Wal-Mart versus Oil Prices

Wednesday, April 27, 2005 | 12:20 PM

Its no coincidence that as Oil has reached multi-year highs, Wal-Mart  has tumbled to multi-year lows.

Thats the dominant impact of higher energy prcies (gasoline in particular):  It takes some jingle out of the pockets of those most price sensitive, budget conscious consumers.  (Yes, it hits Target also, but I suspect not nearly as much).

click for larger chart

Xoi_april_05_2_years

click for larger chart

Wmt_april_05_2_years


What's somewhat astounding is how long it took for the high Oil prices to actually fully work their way into Wal-Mart's stock price. (That's the efficient market for ya!)

Wednesday, April 27, 2005 | 12:20 PM | Permalink | Comments (1) | TrackBack (3)
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The Big Picture looks at charts of Wal-Mart and the price of Oil and notices that they are inverse. [Read More]

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» The Big Picture: Wal-Mart versus Oil Prices from The Stalwart
The Big Picture looks at charts of Wal-Mart and the price of Oil and notices that they are inverse. [Read More]

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Comments

Retailers have about the strongest negative correlation with inflaiton of any S&P industry.

Inflation hits retailers through their margins,
sales and PEs.

Posted by: spencer | Apr 27, 2005 3:30:43 PM

The comments to this entry are closed.



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