Consumer Cos Up on Cyclical Bias -- Consumer Roundup

Shares of retailers and other consumer companies rose as traders rotated back into economically sensitive areas, casting aside worries about tensions between the U.S. and its trading partners. Walmart confirmed reports that it's buying control of India's largest e-commerce company, Flipkart Group, paying $16 billion in a bid to outmaneuver archrival Amazon.com in the world's second most populous nation. Airline shares fell as oil futures spiked above $76 a barrel in London in the wake of President Donald Trump's decision to scrap the nuclear deal with Iran. The spike in oil prices could have a broader effect on the consumer-discretionary sector. "We are getting into the summer-driving season," said Oliver Pursche, chief market strategist at broker-dealer Bruderman Brothers. "Higher oil prices means higher gasoline prices. Given the overall strength in the economy...that will have impact on consumer behavior as a whole, and that could prove to be a drag."

-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

May 09, 2018 16:59 ET (20:59 GMT)

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