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“Once, during Prohibition, I was forced to live for days on nothing but food and water.” – W.C. Fields
In case you missed it yesterday, here’s a clip to yesterday’s segment from CNBC Overtime which discussed the broadening of the market rally. CNBC Overtime – 12/4/23
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
It’s looking like another weak start to the trading day following a weak overnight session in Asia after Moody’s lowered its outlook for China’s credit rating citing rising debt levels. Interest rates are lower as the 10-year yield is on the verge of breaking back down through 4.20%. Where it ends the day, though, will be dictated by the upcoming JOLTS and ISM Services reports at 10 AM.
90 years ago today, Utah ratified the 21st Amendment to the Constitution, and the US thereby achieved the three-fourths majority needed to officially repeal the 18th Amendment and end Prohibition on a national basis. While alcohol was technically illegal in the United States for the prior 13+ years, it was always part of the US culture and social scene, and its illegality only gave organized crime groups a wide open field to operate in. That ended with the 21st Amendment, although even with alcohol being legal on a national basis, several states maintained the Prohibition era through state temperance laws. Mississippi was a dry state for another 33 years before it finally ended Prohibition in 1966. We can only imagine what an Ole Miss tailgate would look like if Prohibition was still in place, but probably not this.
Regarding alcohol, we thought it would be a good time to check out how stocks in the sector have been faring lately. Overall, performance has been mixed. Molson Coors (TAP) has been the best performer this year, gaining more than 20%, but it’s down about 10% from its summer high. Along with TAP, other beer stocks have seen modest YTD gains this year. Even the embattled Anheuser-Bush (BUD) has seen a sharp rebound in the last month as the company’s Bud Light brand has been spending big on brand rehab inking deals with Ultimate Fighting (UFC) and NFL legends Peyton Manning and Emmitt Smith. While beer stocks have had a decent year, companies more involved in the spirits business, like Diageo (DEO) and Brown-Furman (BF/b) are both nursing hangovers.
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