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At the same time, the bank called TJX its "top pick within off-price retail for supply chain margin recovery." The retail industry has been weighed down by a global supply chain crisis in the wake of the Covid-19 pandemic. But with the Federal Reserve aggressively raising interest rates to suppress demand and rein in inflation, supply chain bottlenecks are now beginning to ease. Cowen's take Costco's supply chain this year has been interrupted by port delays, shortages of raw materials and labor costs. On TJX, we agree that supply chain volatility creates opportunities for the off-price retailer, as its business model targets name brands struggling with excess supply.
Cowen downgrades Peloton to market perform from outperform Cowen said there's too much uncertainty around the stock. "We downgrade PTON to Market Perform on challenging post-pandemic trajectory and demand uncertainty amid turnaround effort." Cowen downgrades Lyft to market perform from outperform Cowen said it sees macro and insurance cost headwinds. Cowen downgrades Wayfair to market perform from outperform Cowen downgraded the stock due to macro headwinds. Morgan Stanley reiterates Alphabet as overweight Morgan Stanley said its survey checks show that "GOOGL's position at top of e-com funnel remains strong."
The towboat Roberta Tabor pushes barges up the Mississippi River in Granite City, Illinois, US, on Friday, July 9, 2022. Bloomberg | Bloomberg | Getty ImagesAccording to the National Weather Service Memphis Office, the Mississippi River is projected to tie the all-time record of -10.70 feet, either later today or tonight. The Mississippi River is a vital waterway for trade and the lower water levels have impacted the amount of commodities that can be imported or exported out of New Orleans. "Our members depend upon adequate water levels in the Mississippi River system, to reach domestic and international export markets. The East Coast congestion has had a massive impact on vessel reliability.
Richard Galanti said that there is now a "light at the end of the tunnel" in regards to inflation. Sign up for our newsletter to receive our top stories based on your reading preferences — delivered daily to your inbox. Cowen and Company analyst Oliver Chen asked specifically about the "light at the end of the tunnel," regarding the initial signs that inflationary pressures are weakening. He said that once freight and raw material costs started to decline, Costco was proactive about asking suppliers for price reductions. "But all in, pressures from higher commodity prices, higher wages and higher transportation costs and supply chain disruptions, they're still present, but we are seeing just a little light at the end of the tunnel," he said.
Dollar General sells items at 20% to 40% less than full-price retailers; most items cost below $10. Dollar General, one of the best-known discount chains, is growing rapidly and now has more than 19,000 stores across the US. According to a survey done by the nonprofit think tank, Economic Policy Institute, 92% of Dollar General workers earn less than $15 an hour. It has a limited assortment of groceries, though this is on the riseThe fresh food section at a Dollar General store. David Allio/Icon Sportswire via Getty ImagesDollar General is constantly looking at where it can cut costs in its supply chain.
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