Consumer Staples Select Sector SPDR ETF(XLP)- NYSEARCA
  • Today, 9:48 AM
    • Consumer spending was flat during August to miss the estimates of analysts for a 0.2% gain.
    • If inflation is factored in, spending was actually down for the first time since January.
    • The good news from the Commerce Department data dump was the upward revision in July's tally of consumer spending growth to +0.4%.
    • "It was a soft month for consumer spending following a strong one, and it’s not anything to get worried about," says Jefferies economist Tom Simmons. That's a difficult task in the many segments of the retail sector that depend on consumer traffic at stores.
    • Previously: Personal income rises in-line with forecast (Sept. 30)
    • Related ETFs: IYK, IYC, SCC, UCC, UGE, SZKXLP, VDC, FXG, RHS, FSTA, BITE, CNSF, JHMS.
    | Today, 9:48 AM
  • Fri, Sep. 16, 3:20 PM
    • Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP) - $0.3281. 30-Day Sec yield of 2.42%.
    • Utilities Select Sector SPDR ETF (NYSEARCA:XLU) - $0.4161. 30-Day Sec yield of 3.35%.
    • Health Care Select Sector SPDR ETF (NYSEARCA:XLV) - $0.2785. 30-Day Sec yield of 1.51%.
    • Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) - $0.2999. 30-Day Sec yield of 1.44%.
    • Financial Services Select Sector SPDR Fund (NYSEARCA:XLFS) - $0.1455. 30-Day Sec yield of 1.67%.
    • SPDR Russell 2000 ETF (NYSEARCA:TWOK) - $0.2697. 30-Day Sec yield of 1.48%.
    • SPDR S&P 500 Buyback ETF (NYSEARCA:SPYB) - $0.1876. 30-Day Sec yield of 1.55%.
    • SPDR S&P 400 Mid Cap Growth ETF (NYSEARCA:MDYG) - $0.4196. 30-Day Sec yield of 1.12%.
    • SPDR Russell 2000 Low Vol ETF (NYSEARCA:SMLV) - $0.5652. 30-Day Sec yield of 2.81%.
    • Payable Sept. 26; for shareholders of record Sept. 20; ex-div Sept. 16. 30-Day SEC yield as of 9/15/2016
    | Fri, Sep. 16, 3:20 PM
  • Thu, Sep. 15, 9:02 AM
    • Retail sales fell in August on a month-over-month comparison. The drop wasn't a large surprise considering the onslaught of warnings from the retail sector on store traffic.
    • 8 out of the 13 retail categories showed negative growth during the month, with the largest drops recorded in the building material/garden equipment/supplies dealers and miscellaneous store retailers categories. The broad weakness turned on its head the argument that money freed up from a lower level of auto sales would be funneled into other consumer purchases.
    • Food services and drinking places showed a +0.9% M/M and +5.8% Y/Y increase in a somewhat surprising result considering the harsh read from Black Box Intelligence on August same-store sales in the restaurant sector BITE. Is the discrepancy an indication that independent restaurants are taking market share?
    • On a year-over-year basis, retail sales were up 1.9%. As expected the Amazon-influenced nonstore retailers category did the heavy lifting with an 11% gain. Larger U.S. retail chains (WMT, SPLS, TGT, BBY, DG, COST, KR, WBA, CVS, LOW, HD, SWY) have been raising the issue of pricing pressure in recent conference presentations and guidance updates which could be a nagging sales deflator for the balance of the year.
    • Previously: Retail sales disappoint in August (Sept. 15)
    • Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, CNDF, CNSF, IBUY, JHMC, JHMS.
    | Thu, Sep. 15, 9:02 AM | 6 Comments
  • Mon, Sep. 12, 10:48 AM
    • Goldman Sachs issues a broad warning on the consumer staples sector with Federal Reserve rate hikes looming in the future and continued pressure in emerging markets.
    • General Mills (GIS +0.8%) and Church & Dwight (CHD -0.2%) are singled out as at risk for multiple contraction.
    • Staples which Goldman sees performing well in a rising rate environment include Monster Beverage (MNST +0.1%), Kraft Heinz (KHC +1.5%), and Philip Morris.
    • ETFs: XLP, VDC, FXG, RHS, FSTA, CNSF, JHMS.
    | Mon, Sep. 12, 10:48 AM | 5 Comments
  • Fri, Sep. 9, 5:50 PM
    | Fri, Sep. 9, 5:50 PM
  • Fri, Sep. 9, 3:57 AM
    | Fri, Sep. 9, 3:57 AM | 2 Comments
  • Fri, Sep. 2, 7:32 AM
    • "While the situation is still developing, the prospect of harm is significant and apparent,” writes the Retail Industry Leaders Association to the Department of Commerce and the Federal Maritime Commission in wake of the bankruptcy filing of South Korea's Hanjin Shipping.
    • Hanjin handles nearly 8% of trans-Pacific trade volume, and terminal operators, ports, cargo handlers, truckers, and others are refusing to handle its cargo over fear they won't get paid.
    • The resulting chaos in the shipping industry - U.S.-bound cargo isn't leaving port, cargo-filled Hanjin ships can't get into U.S. ports, already delivered cargo sits un-handled - comes as U.S. retailers are about to begin stocking up for the holiday season.
    • Those most exposed include Wal-Mart (NYSE:WMT), Target (NYSE:TGT), and J.C. Penney (NYSE:JCP). Home Depot (NYSE:HD) says Hanjin isn't its only carrier, so it's not expecting a material impact.
    • Previously: Hanjin ships get stranded at sea (Sept. 1)
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, FXD, RHS, FDIS, FSTA, RCD, PMR, JHMC, JHMS, CNSF, CNDF
    | Fri, Sep. 2, 7:32 AM | 25 Comments
  • Tue, Aug. 16, 10:14 AM
    | Tue, Aug. 16, 10:14 AM
  • Fri, Aug. 12, 8:49 AM
    • Retail sales came in flat for July with weakness in grocery stores, restaurants, and department stores standing out. The U.S. economy had produced three straight months of positive retail sales growth before the disappointment in July.
    • Once again, the nonstore retailers category (primarily e-commerce) led growth with a 1.3% M/M and 14.1% Y/Y gain in July. Sales at health and personal care stores were also solid with a 7.8% Y/Y rise.
    • Retail sales in June were revised to +0.9% from +0.7% in a positive development for the sector.
    • Retail Sales report (.pdf)
    • The S&P Retail ETF (NYSEARCA:XRT) is up 0.64% premarket to $45.55 as it looks to extend on yesterday's gain.
    • Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, JHMS, IBUY, CNSF, CNDF, JHMC.
    • Related stocks: WMT, TGT, COST, SPLS, HD, LOW, AMZN.
    | Fri, Aug. 12, 8:49 AM | 2 Comments
  • Sat, Aug. 6, 11:33 AM
    • The Bloomberg Consumer Comfort Index was a yawner this week, edging up 10 bps to a reading of 43.0. However, within the report a deep divide in the U.S. was tipped.
    • "The index among Republicans has fallen to a nearly two-year low, 35.0, after a steep 12.0-point decline the last two months. In contrast, the CCI held basically steady this week at 50.8 among Democrats, and among independents it’s at a seven-month high, 44.7."
    • Consumer anxiety over politics was cited in dozens of Q2 conference calls by top execs.
    • The pessimistic view of Republicans in comparison to Democrats isn't a shocker, although it leads to the question on if consumer sentiment and consumer spending in the U.S. will improve after November 8 if Donald Trump wins the election?
    • Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, JHMS, IBUY, CNSF, CNDF, JHMC.
    | Sat, Aug. 6, 11:33 AM | 87 Comments
  • Fri, Jul. 29, 9:23 AM
    • Household spending by consumers increased 4.2% in Q2 to mark the best pace for the category since late in 2014.
    • The strong read on consumer spending contrasts with the tightening by businesses amid Brexit fears, F/X pain, and political jitters.
    • Retail ETFs trail broad stock market averages on the year after a May swoon, although most of the damage has been from the mall sector. Companies with a thriving e-commerce business and/or high mix of U.S. sales have held up.
    • Despite the painful headline Q2 GPD miss today, the underlying resiliency shown by consumers could bode well for a variety of retailers such as Amazon (NASDAQ:AMZN), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), Costco (NASDAQ:COST), Kroger (NYSE:KR), Lululemon (NASDAQ:LULU), Dollar General (NYSE:DG), PriceSmart (NASDAQ:PSMT), and Williams-Sonoma (NYSE:WSM) to name a few (add your own ideas in the comments).
    • Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, JHMS, IBUY, CNSF, CNDF, JHMC
    | Fri, Jul. 29, 9:23 AM | 10 Comments
  • Wed, Jul. 13, 11:35 AM
    • It's steady as she goes again for the group of well-known consumer staples stocks that investors continue to find appealing amid global volatility and low interest rates.
    • Procter & Gamble (PG +0.2%), Colgate-Palmolive (CL +0.4%), Clorox (CLX +0.6%), Kimbery-Clark (KMB +0.3%), Coca-Cola (KO +0.2%), PepsiCo (PEP +0.7%), Altria Group (MO +0.5%), Philip Morris International (PM +0.1%), Church & Dwight (CHD +0.3%), and Unilever (UN, UL) have all outperformed the S&P 500 Index this year with returns ranging from 7% to 18%. Kraft Heinz (KHC +1%), Energizer (ENR -0.6%), Hershey (HSY +0.4%), Campbell Soup (CPB +0.3%), and J.M. Smucker (SJM +0.4%) are all up at least 20% YTD.
    • Goldman Sachs has an explanation on why a generous valuation is warranted for the staples favorites.
    • "We raise our average Staples target multiples to 20-22X P/E, up from the 19-20X range prior, to reflect the recent decline in 10-year yield as well as some likelihood of a slower rise in yield over the next 12 months and broader market volatility," wrote the MNST)+(NYSE:STZ)+(NYSE:PF)/11822884.html" target="_blank">analyst team covering the sector in a note to investors.
    • Top consumer staples picks from GS include Monster Beverage (MNST +0.4%), Constellation Brands (STZ +0.2%), Pinnacle Foods (PF +1.2%), and Post Holdings (POST +0.5%).
    • Consumer staples ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
    | Wed, Jul. 13, 11:35 AM | 18 Comments
  • Fri, Jun. 17, 6:44 PM
    • Materials Select Sector SPDR ETF (NYSEARCA:XLB$0.2353. 30-Day Sec yield of 2.01%.
    • Energy Select Sector SPDR ETF (NYSEARCA:XLE$0.4364. 30-Day Sec yield of 2.89%.
    • Financial Select Sector SPDR ETF (NYSEARCA:XLF$0.1211. 30-Day Sec yield of 2.05%.
    • Industrial Select Sector SPDR ETF (NYSEARCA:XLI$0.3072. 30-Day Sec yield of 2.11%.
    • Technology Select Sector SPDR ETF (NYSEARCA:XLK$0.2113. 30-Day Sec yield of 1.81%.
    • Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP$0.3234. 30-Day Sec yield of 2.34%.
    • Utilities Select Sector SPDR ETF (NYSEARCA:XLU$0.4116. 30-Day Sec yield of 3.19%.
    • Health Care Select Sector SPDR ETF (NYSEARCA:XLV$0.2852. 30-Day Sec yield of 1.52%.
    • Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY$0.2767.
    • 30-Day Sec yield of 1.43%.
    • Financial Services Select Sector SPDR Fund (NYSEARCA:XLFS$0.1338.
    • 30-Day Sec yield of 1.85%.
    • Real Estate Select Sector SPDR Fund (NYSEARCA:XLRE$0.2659. 30-Day Sec yield of 3.08%.
    • Payable June 27; for shareholders of record June 21; ex-div June 17. 30-Day Sec yield as of 6/16/16.
    | Fri, Jun. 17, 6:44 PM
  • Wed, Jun. 1, 11:35 AM
    • The market may think it's braced for a summer rate hike, but it isn't, says BAML equity and quant strategist Savita Subramanian, warning of an up to a 15% decline in the coming months.
    • The Fed's rush to hike is at odds with what's currently a profits recession - at least two quarters of year-over-year negative earnings growth. The central bank has only done this three other times, she says, and on two of those occasions, the market sold off over the next 12 months.
    • Big beneficiaries of low rates like consumer staples (NYSEARCA:XLP) and utilities (NYSEARCA:XLU) are also the most expensive sectors, she adds, furthering her point that the market has not priced in a hawkish Fed.
    • ETFs: CRF, SCHX, VV, USA, ZF, FEX, JKD, EEH, EQL, IWL, FWDD, SYE, SBUS, ZLRG, JHML, USSD, USWD
    | Wed, Jun. 1, 11:35 AM | 5 Comments
  • Mon, May 23, 12:39 PM
    • "Politics is now a topic in every client discussion," say David Kostin and team, and the nature of today's electorate nearly assures a close race, even though prediction markets currently assign a high probability of a Clinton victory.
    • When uncertainty rises, consumer staples (NYSEARCA:XLP) typically outperforms, while tech (NYSEARCA:XLK) lags.
    • Getting down to names, with protectionism and tax policy two key areas of debate, buy those stocks with high U.S. sales and high effective tax rates, and avoid those with high foreign sales and low tax rates.
    • High U.S. sales and high tax rates (buy): Cardinal Health (NYSE:CAH), Fidelity National (NYSE:FIS), Discover (NYSE:DFS), AmerisourceBergen (NYSE:ABC), Schwab (NYSE:SCHW), ADP (NASDAQ:ADP), Chipotle (NYSE:CMG), Reynolds America (NYSE:RAI), Express Scripts (NASDAQ:ESRX), Alliance Data (NYSE:ADS), Fiserv (NASDAQ:FISV), Paychex (NASDAQ:PAYX), Whole Foods (NASDAQ:WFM), Akamai (NASDAQ:AKAM), Intuit (NASDAQ:INTU), Southwest Airlines (NYSE:LUV).
    • High foreign sales and low tax rates (avoid): Abbott Labs (NYSE:ABT), Agilent (NYSE:A), Mondelez (NASDAQ:MDLZ), XL Group (NYSE:XL), Waters (NYSE:WAT), Priceline (NASDAQ:PCLN), Transocean (NYSE:RIG), PerkinElmer (NYSE:PKI), Nvidia (NASDAQ:NVDA), Lam Research (NASDAQ:LRCX), Western Digital (NASDAQ:WDC).
    | Mon, May 23, 12:39 PM | 18 Comments
  • Tue, May 17, 10:07 AM
    | Tue, May 17, 10:07 AM | 1 Comment
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