House Democrats contend the $15 per hour minimum wage bill will lift workers who have not seen the benefits of a strong economy.Politicsread more
Analysts think Microsoft's Azure cloud growth slowed in the fiscal fourth quarter. But Windows revenue could benefit from better-than-expected PC sales.Technologyread more
Trump said the USS Boxer fired on and destroyed Iran's drone in the Strait of Hormuz on Thursday in a "defensive action."Politicsread more
Stocks erased earlier losses, but the rise was kept in check as Wall Street digested a mixed batch of corporate earnings results.US Marketsread more
The Philadelphia Fed saw its primary gauge measuring the sector jump from 0.3 in June to 21.8, far better than Wall Street estimates of 5 and the highest in a year.Economyread more
"It's better to take preventative measures than to wait for disaster to unfold," Williams told the annual meeting of the Central Bank Research Association.The Fedread more
The fact that interest rates are relatively low makes the idea of a so-called insurance rate cut later this month an attractive option for the Fed.Market Insiderread more
Video of the event does not show the president disagreeing with his supporters. Instead, it shows that Trump paused as the chant began, allowing his supporters to continue...Politicsread more
President Trump said he's looking at the JEDI Contract that will be awarded to Microsoft or Amazon.Technologyread more
Wealthy clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen previously.Financeread more
Hacker Square at Facebook's headquarters pays homage to the company's early motto of moving fast and breaking things.Technologyread more
Investors should buy shares of consumer companies, especially sellers of beer and cigarettes, as minimum wage hikes kick in and the weather improves this summer, according to Cowen.
"Following our initial work on minimum wage increases in early 2016, we remain constructive on the U.S. consumer, in particular at the lower-end," Cowen's Vivien Azer wrote in a note to clients Wednesday.
"Wage growth data from the BLS as well as the Atlanta Fed continues to point to a healthy lower income consumer," the note read.
Azer cited how 3 million U.S. consumers saw a 5 percent average minimum wage hike on July 1 in several cities (Chicago, Los Angeles and San Francisco) and states (Maryland and Oregon). These events are bullish for consumer stocks because there is an 80 percent correlation between wage growth and spending growth, according to the analyst.
"While there were a handful of consumer and category specific headwinds in 2Q (higher gas prices, slower job growth, and adverse weather trends), growth in overall consumption, consumer credit and housing metrics still accelerated from 1Q, and we maintain a constructive view of the macro backdrop with potential for weather to be better aligned with seasonal trends," the report said.
Higher minimum wages are particularly bullish for tobacco and alcohol companies as they benefit more from the lower income demographic, according to the analyst.
Here are eight overweight-rated consumer stocks Cowen recommends to take advantage of the trend.