The phrase “Black Friday” in the stock market is in stark contrast to other specific black days on the traders’ calendar, such as Tuesday 1929 or Monday 1987. Black Friday, which falls on November 27 this year, is the world consumption day, on which people traditionally buy gifts for Christmas and New Year. Large-scale sales are typical for this day, supporting not only retailers but also the stock market.
In today’s article, we’ll observe the Black Friday phenomena and the tendencies observed over the stock market during the season sale at the year’s end.
Shopping season
Despite the somewhat ominous color, the annual Black Friday certainly carries a positive connotation compared to the market crashes. This is because large-scale sales have a positive impact on companies’ revenues and signal the continued buying activity, which is important for economic growth. Around 30% of all retail sales in the US and Western Europe are in the holiday season, which kicks off with Black Friday.
All eyes on retail
Retailers are traditionally considered to be the primary beneficiaries of Black Friday and the sales season. The historically high index of consumer confidence in the United States and the rest of the world during the autumn sales period may positively impact such companies’ incomes. Traditional consumer goods companies include clothing, electronics, and beauty products. For instance, eBay and L’Oreal can stand as prime examples of fashion and beauty retailers. Consumer electronics giants such as for example Apple and Microsoft are also experiencing a massive surge in consumer demand for their products and services in the last week of November. For more stocks related to the consumer staples industry, you may visit the Kakiforex website.
