Why Dollar General, PepsiCo, and The Hershey Company Plunged Today
Shares of food and essentials companies Dollar General (NYSE: DG), PepsiCo (NASDAQ: PEP), and The Hershey Company (NYSE: HSY) all fell on Wednesday, down 5.4%, 2.9%, and 4%, respectively, as of 2:45 p.m. ET.The across-the-board declines in these consumer staples names can likely be attributed to the House of Representatives passing its budget reconciliation bill last night. While the bill still has to go through committee meetings and also pass the Senate, analysts believe there's a high probability of cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) on the horizon. These programs help lower-income families pay for medical care and food. Therefore, cuts to these programs could affect sales for the three companies, which serve that demographic. Last night, the Republican-controlled House of Representatives passed a budget resolution by a narrow 217-215 vote, with all Democrats and one Republican dissenting. It wasn't clear the resolution would pass, but a late push from President Donald Trump apparently flipped holdouts to "yes" votes.Continue reading
Shares of food and essentials companies Dollar General (NYSE: DG), PepsiCo (NASDAQ: PEP), and The Hershey Company (NYSE: HSY) all fell on Wednesday, down 5.4%, 2.9%, and 4%, respectively, as of 2:45 p.m. ET.
The across-the-board declines in these consumer staples names can likely be attributed to the House of Representatives passing its budget reconciliation bill last night. While the bill still has to go through committee meetings and also pass the Senate, analysts believe there's a high probability of cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) on the horizon. These programs help lower-income families pay for medical care and food. Therefore, cuts to these programs could affect sales for the three companies, which serve that demographic.
Last night, the Republican-controlled House of Representatives passed a budget resolution by a narrow 217-215 vote, with all Democrats and one Republican dissenting. It wasn't clear the resolution would pass, but a late push from President Donald Trump apparently flipped holdouts to "yes" votes.
