economy
These stocks should see the biggest rally if oil prices are done surging
JPMorgan highlights which stocks will gain more than others if Monday's slide in the price of oil continues.
TL;DR
- JPMorgan suggests that industrial companies, retailers, and insurers may benefit from falling energy prices.
- West Texas Intermediate futures dropped significantly following positive remarks about U.S.-Iran talks and a promise to halt strikes.
- JPMorgan screened stocks for the greatest inverse correlation to oil prices.
- Delta Air Lines, Tapestry (owner of Kate Spade and Coach), and Las Vegas Sands are identified as potential beneficiaries.
- Delta Air Lines stock recovered after initial losses due to concerns about fuel costs and travel demand.
- Tapestry's stock rose on optimism that rising energy costs would not significantly curb consumer spending on their products.
- Las Vegas Sands advanced on hopes that an economic downturn would be averted.