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Wal-Mart versus Oil Prices

Posted By Barry Ritholtz On April 27, 2005 @ 12:20 pm In Commodities,Economy,Markets | Comments Disabled

Its no coincidence that as Oil has reached multi-year highs, Wal-Mart  has tumbled to multi-year lows.

Thats the dominant impact of higher energy prcies (gasoline in particular):  It takes some jingle out of the pockets of those most price sensitive, budget conscious consumers.  (Yes, it hits Target also, but I suspect not nearly as much).

click for larger chart

Xoi_april_05_2_years [1]

click for larger chart

Wmt_april_05_2_years [2]

What’s somewhat astounding is how long it took for the high Oil prices to actually fully work their way into Wal-Mart’s stock price. (That’s the efficient [3] market [4] for ya!)

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/04/wal-mart-versus-oil-prices/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/xoi_april_05_2_years.png

[2] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/wmt_april_05_2_years.png

[3] efficient: http://bigpicture.typepad.com/comments/2004/11/the_mostlykinda.html

[4] market: http://bigpicture.typepad.com/comments/2005/03/the_hardly_effi.html

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