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Market Overview

Consumer Staples And Retailers Winning On Tuesday, Restaurants Lagging


Despite Tuesday's pullback midday, consumer staples stocks were 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. (NYSE: DPS), up about 2.2 percent
  • Coca-Cola Enterprises Inc (NYSE: CCE), surging more than 2.4 percent
  • Altria Group Inc (NYSE: MO), returning 3.17 percent
  • Procter & Gamble Co (NYSE: PG), up roughly 1.3 percent
  • Clorox Co (NYSE: 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 (NYSE:EPC) (NYSE: ENR), down 2.7 percent
  • Avon Products, Inc. (NYSE: AVP), which fell slightly in the morning before recuperating in the afternoon
  • Tupperware Brands Corporation (NYSE: TUP), which lost almost 1 percent
  • Herbalife Ltd. (NYSE: HLF), which tumbled more than 2.7 percent
  • Nu Skin Enterprises, Inc. (NYSE: 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 (NASDAQ: COST), up 2.9 percent
  • Kohl's Corporation (NYSE: KSS), up 3.2 percent
  • J C Penney Company Inc (NYSE: JCP), up 3.5 percent
  • Nordstrom, Inc. (NYSE: JWN), up 2.6 percent
  • GameStop Corp. (NYSE: GME), up 2.4 percent
  • Kroger Co (NYSE: KR), up 2.45 percent

On the other hand, accessories retailers underperforming are:

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

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

  • Starbucks Corporation (NASDAQ: SBUX) fell 0.2 percent
  • Yum! Brands, Inc. (NYSE: YUM) dropped 1 percent
  • Arcos Dorados Holding Inc (NYSE: ARCO), a McDonald's franchisee, plummeted almost 2.7 percent

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Posted-In: JPMorgan McDonald'sMovers