Business Standard

Stock investors fret over supply chain woes


Reopening demand and marooned containers have caused bottleneck­s across supply chains just as the holiday shopping season kicks off in North America. It’s also prompting downgrades for the upcoming earnings season. Here are some challenges and opportunit­ies for key sectors ahead of the earnings season:

Semi snags

For the semiconduc­tor industry, expectatio­ns are for more capacity to only trickle in by the latter part of 2022 due to factory closures and longer delivery times. A power crunch in China could also worsen the situation as it shuts down factories. this year. Many have reported a slump in revenues in the third quarter, worsened by shipping logjams and port congestion. However, with the industry’s troubles well documented, some analysts see most of the downside already priced in.

Retail trouble

A 65 per cent plunge in bellwether Bed Bath & Beyond Inc. shares since early June exemplifie­s the problems facing retailers globally, with multiple choke points in their supply chains just as they need to stock up for the most important time of the year. A gauge of the sector is trailing the broader market by more than seven percentage points this half, as companies cut forecasts for sales and profitabil­ity.

 ?? ??

Newspapers in English

Newspapers from India