Wal-Mart versus Oil Prices

April 27, 2005 12:20pm by Barry Ritholtz

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

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!)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/

twitter

facebook

What's been said:

Discussions found on the web:

The Glittering Eye commented on Apr 27

Catching my eye: morning A through Z

Here’s what’s caught my eye this morning: Analysis from Beautiful Atrocities of the broadcasting juggernaut that is Air America. A great reading list from A Straight Shot of Politics. I’ve read all but a handful of Joseph Marshall’s selections and…
spencer commented on Apr 27

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

Inflation hits retailers through their margins,
sales and PEs.
The Stalwart commented on May 2

The Big Picture: Wal-Mart versus Oil Prices

The Big Picture looks at charts of Wal-Mart and the price of Oil and notices that they are inverse.
The Stalwart commented on May 2

The Big Picture: Wal-Mart versus Oil Prices

The Big Picture looks at charts of Wal-Mart and the price of Oil and notices that they are inverse.

Posted Under

Oil Demand versus Capacity

China’s Thirst for Oil (and Cancer treatments)

What's been said:

Posted Under

Sign Up for My Newsletter