In the space of a few days last week, equities handed back their yearlong gains amid a sell-off that sent ruptures across global markets. The jury is still out on whether this is a long-overdue correction or the beginning of a more bearish run, but as earnings season gets into full swing, businesses in the consumer industry are feeling the effects of jittery investors.
The two biggest casualties among the world's 100 largest listed consumer companies were Chinese distillers Wuliangye Yibin Co. Ltd. and Kweichow Moutai Co. Ltd., both of which fell more than 20% in the space of a week after reporting earnings that missed analysts' expectations. Belgium-based brewer Anheuser-Busch Inbev SA/NV slipped almost 10%, citing changing demographics and challenging international markets, while Amazon.com Inc., Sony Corp. and Colgate-Palmolive Co. also disappointed.
At the other end of the scale, Tesla Inc. was the sector's strongest performer. Elon Musk's electric-car maker gained 27.3% in the seven days to Oct. 29 after posting a shock profit for the third quarter, even managing to convince Citron Research, one of its infamous short-sellers, to reverse its position. But Tesla would not be Tesla without a little drama. Barely 48 hours had passed since the earnings release when The Wall Street Journal reported that the FBI is investigating the company's claims regarding Model 3 production numbers.
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Automotive
Daimler CFO says inventory reduction in Q4 to boost cash flow
Daimler's swollen car and van inventory will return to a more normal level by the end of the fourth quarter.
Ford CEO remains cautious about $11B restructuring plan
CEO Jim Hackett said he wants to be cautious with the "massive undertaking."
Tesla 'well on track' to triple energy storage deployments in 2018
Almost lost in electric-car maker Tesla Inc.'s surprising rise to profitability in the third quarter of 2018 was the improved performance of its energy division, especially its battery storage business.
China's FAW secures 1 trillion yuan credit line from 16 banks
The move is part of a Chinese government initiative to re-energize the economies of China's northeastern provinces.
Retail
Moody's: Positive outlook for retail for 1st time since 2015
The positive outlook was attributed to strong macroeconomic factors as well as brick-and-mortar stores better adapting amid a turbulent time for the industry.
Mexican retailer FEMSA pushes expansion of OXXO stores, services
The company plans to grow its store count across Latin American and offer more services at those convenience stores, executives said.
Amazon forecasts slowdown for 2018 holiday sales growth
The Seattle-based retailer and technology company is headed for its slowest holiday sales growth since 2014, it said Oct. 25.
Food, Beverage & Tobacco
AB InBev CEO cites shrinking US beer industry, international issues for Q3 drop
The company known for Budweiser and Corona said it remains optimistic that the issues leading to a sharp earnings drop will not affect the fourth quarter.
Retaliatory tariffs from Canada, Mexico offset gains from pending trade deal
Certain U.S. dairy, pork and spirits products will still be subject to 10% to 20% tariffs from Canada and Mexico despite a trilateral free trade agreement that was recently announced.
Altria sees little impact for revenue, profit from e-cigarette crackdown
The company will pull some flavored e-cigarette products from shelves to address regulatory concerns over use by minors, but most of Altria's e-cigarette sales come from traditional tobacco flavors, executives said.
Consumer Edge is a weekly collection of critical developments across the automotive; retail; and food, beverage, and tobacco industries that draws on exclusive analysis and value-added content from the Consumer News team at S&P Global Market Intelligence.