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Consumer Staples Select Sector SPDR ETF (XLP)

- NYSEARCA
  • Mon, May 18, 1:07 PM
    • Societe Generale is out with a note in which it dissects the impact of higher interest rates on stocks.
    • The investment firm notes the Consumer Staples ETF (NYSEARCA:XLP) boasts a dividend yield of 2.5% which becomes less attractive as rates march upward.
    • Individual consumer staples stocks identified by SG as having the strongest correlation to swings in the 10-year Treasury yield are Colgate-Palmolive (NYSE:CL), Costco (NASDAQ:COST), McKesson (NYSE:MCK), and Brown-Forman (BF.A, BF.B).
    • Consumer Staples ETFs: VDC, FXG, RHS, FSTA, PSL, PSCC.
    | 8 Comments
  • Sat, May 16, 10:28 AM
    • The retail sector jumps into the spotlight next week with heavyweights Target (NYSE:TGT), Home Depot (NYSE:HD), Lowe's (NYSE:LOW), and Wal-Mart (NYSE:WMT) all scheduled to report Q1 earnings.
    • Retail sales in the U.S. have only recovered slightly in March and April after dropping off from December to February. The flat M/M reading for April deflated the theory that cold weather and a West Coast port slowdown was holding back growth. Many of the rosy forecasts over the impact of sub-$3 gas prices have also been wadded up.
    • The spotlight is now back on the consumer with some some economists reviving classic Milton Friedman behavioral economics to explain the cautious spending trend - while others point to the millennial generation which is online and thrifty.
    • E-commerce accounted for over half the growth of U.S. retail sales in Q1 with a tally of $80.3B (+14.5% Y/Y). The Big 4 reporting this week will all talk e-commerce and others ways they are adapting away from the pure brick-and-mortar model.
    • Earnings conference calls from the quartet should be illuminating as analysts focus on Wal-Mart's new partnership with Alibaba and free shipping service, Target's grocery ambitions, Home Depot's pro/contractor business, and Lowe's view on SG&A.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, PEZ, UGE, PSL, PSCC, PSCD, SZK.
    | 11 Comments
  • Wed, May 13, 8:54 AM
    • Oppenheimer is out with a warning on consumer staples stocks.
    • The investment firm notes the sector underperformed during the last three cycles of rising interest rates.
    • Jarden (NYSE:JAH) and WhiteWave Foods (NYSE:WWAV) are the top sector picks of Oppenheimer come interest rates hikes or not.
    • Consumer staples ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
    | Comment!
  • Fri, Apr. 24, 8:44 AM
    • Is the retail rally over? After a 10-month period in which the SPDR S&P Retail ETF (NYSEARCA:XRT) outperformed the S&P 500 by 1.2K basis points, since April 2 the XRT has underperformed by 270 basis points - off 0.4% as the S&P 500 has added 2.3%.
    • The reversal comes alongside a major bounce in oil, up more than 30% since bottoming in mid-March. The thinking isn't too complicated - falling oil prices put more money in consumers pockets to spend at places like Wal-Mart, and surging oil prices is pulling money out.
    • As it turns out though, consumers didn't spend as much of the saved money as thought, with core retail sales shy of estimates for the last four months, and the savings rate hitting its highest level since December 2012.
    • Source: Bloomberg
    • Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, PEZ, UGE, PSL, PSCC, PSCD, SZK
    | Comment!
  • Wed, Apr. 22, 1:20 PM
    • "We have consumer staples (NYSEARCA:XLP) and healthcare stocks (NYSEARCA:XLV) trading on average at 20 times earnings and five times book value - while these stocks aren’t often thought of as value, they actually comprise 20% of the Russell 1000 Value (NYSEARCA:IWB) index," says Richard Pzena on the company (NYSE:PZN) earnings call (transcript).
    • Add REITs and utilities to the mix, he continues, and it's pretty hard to call that value index "value" anymore.
    • "The natural question: Is it different this time? Does this era of low interest rates presage something permanently different ... We believe that the odds of such an outcome are low."
    • Though, not getting into in the subject during the earnings call, Pzena presumably remains bullish on the large-cap financial sector names (NYSEARCA:XLF) which continue to be weighed down on by ZIRP.
    • Previously: Low-rate "torture" for the regional lenders (April 21)
    | Comment!
  • Mon, Apr. 13, 4:53 AM
    • U.S. consumer stocks have been flying off the shelves, as tumbling oil prices boost Americans' spending power, but some investors are beginning to suffer from sticker shock.
    • Consumer discretionary stocks in the S&P 500 have risen 18.8% in the last six months, outpacing the 10.3% gain in the broader S&P 500, and the segment recently displaced healthcare as the most widely owned sector among stock pickers, according to Bank of America Merrill Lynch.
    • The rally still has some analysts and portfolio managers worried due to elevated valuations and increasing oil prices over the last month is also raising concerns.
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, PSL, UGE, RCD, PEZ, PSCC, PSCD, SZK
    | Comment!
  • Thu, Apr. 2, 7:35 AM
    • Expecting the S&P 500 (NYSEARCA:SPY) to gain only another 2% by year-end, and noting the index's pricey relative valuation, Goldman's David Kostin recommends investors instead by the Nasdaq 100 (NASDAQ:QQQ) - its expected earnings growth of 14% tops the S&P's 5%, but both indexes trade at similar P/Es.
    • Breaking it down into sectors, Kostin recommends being Overweight information technology, energy (NYSEARCA:XLE), and telecom services (XTL, IYZ).
    • Neutral: Health care (NYSEARCA:XLV), consumer discretionary (NYSEARCA:XLY), materials (NYSEARCA:XLB), and utilities (NYSEARCA:XLU).
    • Underweight: Financials (NYSEARCA:XLF), consumer staples (NYSEARCA:XLP), and industrials (NYSEARCA:XLI).
    | 7 Comments
  • Tue, Mar. 31, 9:43 AM
    • Economists don't seem fully convinced that weather is behind the slower-than-anticipated pace of spending on goods and services for the first part of 2015.
    • Most have lowered Q1 GDP estimates without necessarily calling for a spring sales bounce.
    • Despite some indications consumer confidence has improved and a stronger job environment, consumers have increased their level of personal savings instead of spending in droves.
    • The weather excuse will get its test when April numbers start coming in.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, PSL, UGE, RCD, PEZ, PSCC, PSCD, SZK
    | Comment!
  • Wed, Mar. 25, 10:09 AM
    | 1 Comment
  • Fri, Mar. 20, 2:20 PM
    • Consumer Staples Select Sector SPDR (NYSEARCA:XLP) announces quarterly distribution of $0.296.
    • 30-Day Sec yield of 2.36% (as of 03/18/2015).
    • Payable Mar 30; for shareholders of record Mar 24; ex-div Mar 20.
    | Comment!
  • Thu, Mar. 12, 8:44 AM
    • Retail sales grew only 1.7% Y/Y to trail the pace forecasts by economists.
    • The drop in sales from January was influenced in part by weather, although a higher-than-anticipated propensity by consumers to save was also a factor.
    • Nearly all retail categories showed a year-over-year increase in sales, but a 23% drop in sales at gasoline stations due to lower prices took a big cut.
    • The broad food services category which includes restaurants showed a 8.6% Y/Y rise, while sales at health & personal care stores were up 4.8%.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, PSL, UGE, RCD, PEZ, PSCC, PSCD, SZK
    • Previously: Retail sales decline in February
    | Comment!
  • Fri, Mar. 6, 10:46 AM
    • Global consumer staples stocks are weaker than market averages as concerns on market pricing and F/X sit in the background.
    • The 1.21% gain in the U.S. Dollar Index isn't going unnoticed by traders.
    • Notable decliners include General Mills (NYSE:GIS) -1.6%, Colgate-Palmolive (NYSE:CL) -2.0%, Unilever (NYSE:UL) -1.9%, General Mills (GIS) -1.8%, Mondelez International (NASDAQ:MDLZ) -1.9%, Post Holdings (NYSE:POST) -1.8%, Hershey (NYSE:HSY) -1.8%, Coca-Cola (NYSE:KO) -1.2%.
    • The Consumer Staples ETF (NYSEARCA:XLP) is down 1.2% versus S&P 500 -0.4%.
    • Other staples ETFs: VDC, FXG, RHS, FSTA, PSL, PSCC
    | 5 Comments
  • Tue, Feb. 17, 8:25 AM
    • Cowen Research takes a broad look at the retail sector in a new note.
    • Analyst Oliver Chen cites tight inventory control, low gas prices, and higher employment rates as positive factors heading into the Spring.
    • F/X pressure and valuation on some names are concerns for investors.
    • Other retail analysts have become more optimistic after taking in the strong comp growth in the restaurant sector. They see the improvement as a potential early indicator on consumer spending, despite the disappointing headline misses on recent retail sales reports.
    • Previously: Restaurant sales show sharp increase in January (Feb. 11 2015)
    • Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, RCD, UGE, SZK
    | Comment!
  • Thu, Feb. 12, 11:22 AM
    | Comment!
  • Tue, Feb. 10, 8:28 AM
    • Consumer staples giants have been able to price out some of the F/X pain tied to Latin America, notes retail analyst Rahul Sharma.
    • The sector has been under a watchful eye due to the strong currency headwind in South America.
    • Today, Coca-Cola was the latest staples mainstay to navigate through the issue through pricing and allocation strategies.
    • The return on the Consumer Staples ETF (NYSEARCA:XLP) trails the S&P 500 over the last month by about 110 bps.
    • Previously: Coca-Cola +3.1% as N.A. and still beverages lift Q4 results
    • ETFs: VDC, FXG, RHS, FSTA, PSL, PSCC
    | Comment!
  • Fri, Jan. 30, 2:59 PM
    • The broad averages are moderately in the red, and would be even more so if it wasn't for energy (XLE +1%), solidly higher as oil flies upward by nearly 8% into the close.
    • ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, FENY, PXJ, RYE, FXN, DDG
    • What's doing worse than energy this year? That would be financials, and the XLF is lower by another 0.95% in today's session. Also faring poorly are utilities (XLU -1.3%), health care (XLV -0.8%), and consumer staples (XLP -1.2%).
    | 4 Comments
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XLP Description
The Consumer Staples Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Consumer Staples Select Sector Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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