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

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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.

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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

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