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Buyers will spend about $ 7.8 billion on Cyber Monday – a record – reinforcing the holiday shopping season. And Wall Street will probably ignore it.
Even exceptional vacations will not distract the market from rising interest rates that could hurt car and home sales next year and the growing trade war between the United States and China, which should slow down global economic growth. In September, US President Donald Trump imposed tariffs of 10% on Chinese imports worth about $ 200 billion and planned to raise the tax to 25% in January, which would result in an increase of price.
Fears of a slowdown in consumer spending in 2019 outweigh the positive signs of successful vacations, said Tom Forte, an badyst at DA Davidson & Co.
"A lot of the tariffs will probably be borne by consumers in the second half of 2019 in the form of higher prices for products," he said. "Higher interest rates could dampen spending on expensive items."
Companies like Amazon.com Inc., Walmart Inc. and Target Corp., struggling to earn online vacation expenses, may not receive immediate profit in terms of market value. US buyers will spend about $ 124.1 billion online in November and December, up 14.8 percent from a year earlier, according to Adobe.
Purchases on Black Friday, traditionally the best day for electronics sales, totaled $ 6.22 billion, up 23.6% from last year, according to data. Adobe. Spending on cyber Monday, which is generally the best day for toy sales, is expected to increase by 17.6%.
According to Craig Johnson, President of Customer Growth Partners, Craig Johnson, President of Customer Growth Partners, grew more than 5% in November and December, for the second year in a row, the first since before the Great Recession. ten years old. Investors may be worried about whether this pace can be maintained, even if it is based on low unemployment and wage growth rather than the intensive use of credit that led to the crisis. financial situation, he said.
"The strong consumer and retail spending we are seeing now is a result of this healthy foundation, which is far more sustainable than the credit bubble we had 12 years ago," Johnson said.
Cyber Monday is rooted in people who return to work after a long Thanksgiving weekend and use the fast Internet connections on their desktops to search for the best deals. Such connections now prevail in homes and on smartphones, which should make the day less important. But buyers are still conditioned to look for online offers and retailers are trying to meet that expectation.
"Even if you see all these sales before Black Friday, people are concentrating their spending on cyber Monday," said Taylor Schreiner, director of Adobe Digital Insights.
Now read: Makro Cyber Monday Dirty – Hundreds of incredible technology offers
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