NEW YORK (AP) — While most figures on Wall Street this week appeared in vivid shades of red, not everything was downturned.
Companies specializing in food, healthcare, and essential goods either made gains or remained fairly steady, even though a decline within the wider stock market concerns over an intensifying trade conflict eliminated trillions of dollars in worth for America’s largest corporations Major tech corporations, niche retail businesses, travel firms, and energy companies experienced significant declines.
Meanwhile, numerous investors looking for secure investment options redirected their attention towards businesses that generally perform well during economic downturns and recessions. They reasoned that even amid tough times, Americans would continue needing healthcare services, essential items like food, hygiene products including soap and toilet paper, along with home utilities such as electricity. Not to mention an occasional alcoholic or carbonated drink.
"The market anticipates significant economic damage due to tariffs eroding corporate profitability, negatively impacting employment rates, and reducing consumer expenditure," stated Bill Adams, the chief economist at Comerica Bank.
Below are several firms that have reported either increases in their profits or only slight decreases over this past week:
Food
Food makers, grocery stores, and restaurants all expect to feel an impact from higher costs on imported products. Food, especially at grocery stores, is among the many expenses that can't be completely cut out of a budget and will likely be grudgingly absorbed by people.
Conagra, up 0.5%
General Mills, up 0.9%
Hormel Foods, up 1.3%
Utilities/Essential Services
Electrical, natural gas, and various other service providers tend to remain stable even when economies fluctuate. These costs, similar to how one cannot easily eliminate fuel expenses for vehicles, must often be maintained within an individual’s financial planning regardless of economic conditions.
Exelon, up 1.4%
American Tower, up 2.1%
Consolidated Edison, up 0.5%
American Water Works has increased by 0.7%.
Health care
Investing in healthcare is relatively secure. Companies involved with hospital operations, insurance providers, and various other health-related enterprises are deemed essential services.
Molina Healthcare, up 7.4%
Centene, up 3.2%
UnitedHealth Group, up 1.8%
Groceries and some retailers
Supermarkets and large chain stores with significant grocery areas are seen as stable too. Stores offering discounts frequently profit when shoppers reduce their expenses.
Kroger, up 0.7%
Dollar General, up 7.6%
TJX Companies, up 3.3%
Fast food
During periods of high inflation and economic recessions, restaurant businesses frequently find themselves amongst the most severely affected due to tighter household budgets. However, this reduction in expenditures typically leads consumers towards more affordable alternatives like quick-service eateries and moderately priced dining spots.
Domino's Pizza, down 0.7%
Beverages
Customers who usually reduce dining and drinking outside start diverting part of that expenditure towards consuming at home instead. Manufacturers of beer and soft drinks have cautioned that tariffs could negatively impact their profits; however, investors are increasingly directing attention towards larger companies in the sector.
Molson Coors Beverages saw an increase of 1%
Coca-Cola, down 0.6%
Damian J. Troise, The Associated Press