Strength of U.S. consumer staples stocks shows cracks as market recovers

  • 📰 Reuters
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

A broad rebound in U.S. stocks is leaving behind shares of some supermarkets, household product makers and other staples companies that provided a haven in last month's coronavirus-fueled selloff.

). Consumer staples companies in the S&P 500 are expected to post a 0.8% rise in quarterly earnings compared to a decline of 12.3% for companies in the index overall, according to IBES data from Refinitiv.

Still, investors’ outlook for the sector could hinge on how quickly they believe the economy and market could bounce back. Indeed, there’s still little clarity on the trajectory the pandemic will take in coming months or the full extent of the financial damage it will cause. “Moderation isn’t bad as long as sales don’t go negative, which you could see in some other industries,” Sundaram said.

Dividends are one reason David Katz, chief investment officer at Matrix Asset Advisors, owns staples despite his view that stocks in the sector will not rise as much as others in a recovery. Matrix added to its holding in Kellogg and initiated a position in Coca-Cola during the recent selloff, Katz said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

yes. as the market 'recovers'

The photo is revealing. Coca-Cola a staple product?! Worth noting that obesity and diabetes are two of the leading indicators of who will end up in ICU with corona.

I wouldnt call this a recovery yet, traders are gonna dump before earnings come out

Trump sucks

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock-market bull warns investors not to ‘chase the rally’ as ‘epic battle’ between Fed and coronavirus unfoldsCanaccord Genuity chief market strategist is no stranger to bullish stock-market calls, but after a remarkable run for U.S. stocks over the past few weeks,... Gold is terribly dealing with bears. I doubt they even venture it 1st this is NOT a typical “bear market.(Panic) 2nd the market has not reflected the working class economy for decades (faux relief) 3rd the global pandemic is making money for Insiders (rally) 4th Taxpayers bail out banks & corporation already paying net $ 0% (frustration) Main Street America experiences massive loss of income,feels pain & uncertainty, and gets a tiny Congress stimulus (basically a good’ol “addaboy,hang in there”). Wall Street America experiences massive wealth protection, feels euphoria & confidence, and gets a Huge Fed Bailout.
Source: MarketWatch - 🏆 3. / 97 Read more »

Leon Black says market downturn has 'shown us the benefit' of Apollo's strategiesThe Apollo Global Management CEO said on CNBC's 'Closing Bell' that his firm has a lot of 'dry powder' and is looking for opportunities. Oh yeah? Meanwhile he is begging the FED for money 🖕you hypocrite The guy literally said nothing substantive and was worse at constructing sentences than Joe Biden. If I had money invested with them, I'd withdraw yesterday.
Source: CNBC - 🏆 12. / 72 Read more »

Stocks falter after their biggest week since 1974Stocks are opening lower on Wall Street following the biggest week for the market since 1974. Duh. We’re in the Great TrumpGOP Depression! This is as bullshit a lede as I have ever read, the “biggest week” was in the middle of a goddamned avalanche of stock values, it has been years since the market had its current value. Anyone thinking they're going back to values 4 months ago is going to have to wait a loooooong time.
Source: latimes - 🏆 11. / 82 Read more »