Consumer Stocks Struggle as Industrial Names Surge, China and Consumer Weakness Create Divergence
-
Consumer-facing companies like Nike, Lululemon, Apple, Tesla, and Starbucks are struggling due to slowing consumer demand and China exposure.
-
Industrial and business-facing companies are hitting record highs, showing a divergence in the broader market.
-
The struggling consumer stocks rely on brand power and consumer discretionary spending to justify premium pricing.
-
China is an important growth market for Apple and Tesla, but sales there are slowing.
-
Patient investors could see the struggles as a buying opportunity, but more volatility is expected until consumers and China recover.