The inflation bear rampaged through Wall Street Monday, gnawing on nearly every bev/al stock that we follow with three exceptions. At least two of those will probably be trading lower by the time U.S. markets open Tuesday.
The big picture: The Dow Jones Industrial Average fell 2.79% to 30, 516.74. The S&P 500 fell 3.88% to 3749.63. Meanwhile, the 10-year Treasury Note saw its yield jump to 3.34%, the highest in 10 years. As bond yields go up, bond prices go down.
The trigger for the broad selloff was Friday’s Consumer Price Index report, which was up 8.6% in May, its highest level in 40 years. That led investors to expect the Fed will increase interest rates not 0.5% but 0.75% in a move to rein in inflation.
The biggest loser yesterday among bev/al stocks was Eastside Distilling, down 11.99% to 60 cents a share, followed by Fresh Wine Wine, down 9.09% to $2.70 a share. Fresh Vine said it had gained placement in more than 200 Total Wine & More Stores, followed by Boston Beer, down 6.17%; Moet Hennessey Louis Vuitton, down 4.9%; Vintage Wine Estates, down4.49%; Duckhorn Portfolio, down 4.10%’ Constellation Brands, down 3.79%; Brown-Forman, down 3.42%; Molson Coors Beverages, down 3.27%, Diageo, down 2.43%; Pernod Ricard, down 1.43%; Anheuser-Busch InBev, down 1.38%; Midwest Grain Products, down 1.03% and Willamette Valley Vineyards, down 0.49%.
Three stocks showed no change: Davide Campari-Milano, Marie Brizar Wines & Spirits, and Winc, Inc. Two of them — Davide Campari-Milano and Marie Brizard — are based in Europe and are likely to open lower, once EU markets reopen.