According to JPMorgan, industrial companies such as Boeing Co., retailers such as Costco Wholesale Corp., and even insurance companies such as Allstate Corp. could benefit greatly if energy prices begin to fall. West Texas Intermediate futures fell more than 7% on Monday after President Donald Trump said the United States and Iran had “productive” talks on the Middle East war and promised to halt all attacks on U.S. energy infrastructure for five days. JPMorgan recently calculated which companies stand to gain the most from lower energy costs for themselves and their customers. The bank screened stocks with the highest inverse correlation to oil prices based on the relative returns of various industries to the S&P 500 and found that: Delta Air Lines is up nearly 4% on Monday. The company’s shares initially fell by more than 10% in the wake of the outbreak of war in Iran, but recovered after the first two weeks of the conflict, on the grounds that they would be hurt by soaring jet fuel prices and weak travel demand. Tapestry, the owner of Kate Spade and Coach, rose more than 4% on Monday after falling 9% through Friday since the start of the Middle East war. Tapestry has been weighed down by concerns that rising energy costs will reduce consumer spending and reduce demand for affordable luxury goods providers. Las Vegas Sands is also a potential winner, according to JPMorgan. Casino resort owners added more than 3% on Monday, joining other hotel companies that moved forward on optimism that an economic downturn can be avoided.
