Consumer Staples & Retailers Winning On Market Selloff; Restaurants & Direct Sellers Lagging

Loading...
Loading...

The market, as a whole, is going through a tough day. The S&P 500 (INDEXSP:.INX), the NASDAQ Composite (INDEXNASDAQ:.IXIC) and the Dow Jones Industrial Average (INDEXDJX:.DJI) are all down on Tuesday afternoon.

Despite the pullback in the broader market, consumer staples stocks are outperforming “on a safety bid as well as a dividend trade” with a pullback in yields, analysts at JPMorgan explain.

Across staples, the outperformers are:

  • Dr Pepper Snapple Group Inc. DPS, up about 2.2 percent
  • Coca-Cola Enterprises Inc CCE, surging more than 2.4 percent
  • Altria Group Inc MO, returning 3.17 percent
  • Procter & Gamble Co PG, up roughly 1.3 percent
  • Clorox Co CLX, which rose more than 1.3 percent

In the staples and direct sellers industries, however, some stocks came under pressure due to the strength in the U.S. Dollar. This is the case for:

  • Edgewell Personal Care Co EPC ENR, down 2.7 percent
  • Avon Products, Inc. AVP, which fell slightly in the morning before recuperating in the afternoon
  • Tupperware Brands Corporation TUP, which lost almost 1 percent
  • Herbalife Ltd. HLF, which tumbled more than 2.7 percent
  • Nu Skin Enterprises, Inc. NUS, which is down 1.8 percent in afternoon hours

The pullback in crude oil, however, is benefiting retailers, which are, in general, trading nicely. Nonetheless, accessories stocks are lagging. Within the outperforming retailers, the following companies can be counted:

  • Costco Wholesale Corporation COST, up 2.9 percent
  • Kohl's Corporation KSS, up 3.2 percent
  • J C Penney Company Inc JCP, up 3.5 percent
  • Nordstrom, Inc. JWN, up 2.6 percent
  • GameStop Corp. GME, up 2.4 percent
  • Kroger Co KR, up 2.45 percent

On the other hand, accessories retailers underperforming are:

  • Coach Inc COH, mostly flat
  • Michael Kors Holdings Ltd KORS, which fell in the morning hours but is now up almost 0.8 percent, in the afternoon hours
  • Vera Bradley, Inc. VRA, falling 0.4 percent
  • Tumi Holdings Inc TUMI, down more than 1 percent
  • Dillard's, Inc. DDS, down more than 0.6 percent

Finally, restaurants seem to be performing poorly as well, with global names lagging:

  • Starbucks Corporation SBUX fell 0.2 percent
  • Yum! Brands, Inc. YUM dropped 1 percent
  • Arcos Dorados Holding Inc ARCO, a McDonald's franchisee, plummeted almost 2.7 percent
Loading...
Loading...
Posted In: MoversJPMorganMcDonald's
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...