e-commerce stocks, and Amazon (AMZN) was at the forefront, staged a sharp rally on Thursday after a closely watched report suggested the Fed’s actions to curb inflation are working. Shares of AMZN rose by double digits.
Other e-commerce stocks showing big gains include home goods e-tailers Wayfair (W), ebay (eBay), chewy (CHWY) and ebay (ETSY).
E-commerce stocks and the broader stock market rose after the U.S. Bureau of Labor Statistics released its consumer price index report for October that showed inflation cooling more than expected. The report is a hopeful sign that consumers hurt by persistent price increases will get some economic relief.
AMZN shares rose 12.2% in the stock market today to close at 96.63.
Wayfair shares surged 28% to 36.80. eBay rose 10.1 percent to 44.66. Pet food retailer Chewy rose 19.9 percent to 38.34, while crafts dealer Etsy rose 16.1 percent to 110.21.
E-commerce stocks rose during the Covid-19 shutdown as consumers flocked to them to buy goods as they sheltered at home. But the rally was later muted as the coronavirus crisis eased and consumers returned to some normalcy as cities opened their doors.
Consumers’ shift to e-commerce during Covid is expected to be permanent. It turned out not to be the case. And, as consumers return to their old ways of shopping, they tighten their wallets as inflation roars over its ugly head.
AMZN Stock: More work to be done
When Amazon released its third-quarter results in October. On the 28th, the company said more work needed to be done to repair the damaged ships. Amazon stock fell.
“There’s clearly a lot going on in the macroeconomic environment, and we’re balancing our investments to be more lean without compromising our key long-term strategic bets,” CEO Andy Jasey said in a written statement to the earnings report.
In addition, the Wall Street Journal reported Thursday that Jassy is leading a cost-cutting review and trimming businesses that are not yet profitable. As part of the review, Amazon’s leadership is closely evaluating its home devices division, which includes its Alexa smart speaker business.The sector reportedly loses around $5 billion annually
Thursday’s double-digit gain in AMZN stock would be the biggest since late July, when the company reported better-than-expected second-quarter results.
On Nov. 2, eBay shares rose as it reported third-quarter results that beat expectations. Shares of Wayfair also rose when it reported quarterly results on Nov. 11. 2 beat revenue expectations. Etsy’s third-quarter results also topped the list.
Follow Brian Deagon on Twitter @IBD_BDeagon Learn more about tech stocks, analytics and financial markets.
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