Wal-Mart versus Oil Prices

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).

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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!)

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  1. 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…

  2. 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.

  3. 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.

  4. 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.

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