Beers & Burgers: Harvey's To Go | SaltWire #harveys #burger #beer #foodbloggerNEW YORK - U.S. energy shares are soaring as investors benefit from rising oil prices and a stronger-than-expected economy, while seeking to protect their portfolios from a feared resurgence of inflation.
"If inflation is going to pop up again ... the hedge is to have some commodities exposure," said Ayako Yoshioka, senior portfolio manager at Wealth Enhancement Group. The economy will be in focus in the coming week as first-quarter earnings season heats up, with reports from Netflix, Bank of America and Procter & Gamble. Monthly U.S. retail sales out on Monday will offer a view into U.S. consumer behavior, on the heels of another stronger-than-expected inflation report last Wednesday.
Shares of miners, steel firms and other commodity-linked companies have risen along with energy stocks. Strategists at Morgan Stanley and RBC Capital Markets in the past week reiterated their bullish calls on energy shares. In a note, RBC's Lori Calvasina cited heightened geopolitical risks and a"growing acceptance of the idea that the economy is actually quite strong."
Conversely, strong economic growth could boost corporate profits and steer investors into other sectors that have done well this year, such as industrials and financials. Companies in the S&P 500 are expected to increase earnings by 9% this year, LSEG IBES data showed.