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Consumer Staples Select Sector SPDR ETF (XLP)

- NYSEARCA
  • Wed, Aug. 12, 4:27 PM
    • The Panama Canal Authority plans to restrict the amount of cargo ships will be allowed to carry through the canal beginning on September 8.
    • The action is a result of the low level of water in Gatun Lake and Alajuela Lake resulting from this year's El Nino phenomenon.
    • Citigroup has its eyes on the development, noting retailers with potential exposure this fall to reduced shipping to East Coast ports include Carter's (NYSE:CRI), Columbia Sportswear (NASDAQ:COLM), Wolverine Worldwide (NYSE:WWW), Staples (NASDAQ:SPLS), and Steve Madden (NASDAQ:SHOO).
    • Panama Canal Advisory (.pdf)
    • 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
    | Wed, Aug. 12, 4:27 PM | 1 Comment
  • Sat, Aug. 8, 11:02 AM
    • Retail sales take center stage next week with a rebound for July expected after the headline number fell in June.
    • The consensus estimate is for a 0.5% M/M increase, although some projections range as high as 1%. A reading in negative territory could rattle markets.
    • Only handful of retail chains still issue monthly sales reports, but many of those that do reported positive growth for July. Costco (NASDAQ:COST), Fred's (NASDAQ:FRED), L Brands (NYSE:LB), Stein Mart (NASDAQ:SMRT), and Rite Aid (NYSE:RAD) all showed pockets of strength. Mall retailers Cato (NYSE:CATO), Zumiez (NASDAQ:ZUMZ), and Buckle (NYSE:BKE) were disappointments. Full Thomson/Reuters analysis (.pdf)
    • Two new factors emerged last week which could impact the U.S. retail sales print: (1) U.S. auto sales topped estimates for July; (2) several retailers warned later sales tax holidays in key states pushed back-to-school spending into August from July.
    • There's also the question if Wal-Mart's (NYSE:WMT) Amazon Prime Day counterpunch stoked extra sales. The Bentonville giant and Amazon (NASDAQ:AMZN) both reported strong responses.
    • On a broader scale, the retail sales report will factor into forecasts on when the Federal Reserve will lift interest rates.
    • 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
    | Sat, Aug. 8, 11:02 AM | 12 Comments
  • Thu, Jul. 30, 11:42 AM
    • Execs with Procter & Gamble (NYSE:PG) were on the defensive during the firm's earnings call as they described the "tough sledding" they see ahead for the consumer products company.
    • Bernstein analyst Ali Dibadj in particular hammered the P&G team over top-line growth and wanted to know why a major breakup didn't make sense.
    • Procter remains committed to a path of shedding unprofitable brands and sees low single-digit organic sales growth, although the argument presented today was uneven.
    • PG is down 3.6% and stands near sessions lows.
    • The company is the largest holding in the Consumer Staples Select ETF (XLP -0.3%) with a 12.1% index weight.
    • Procter & Gamble earnings call webcast
    • Previously: Procter & Gamble beats by $0.05, misses on revenue (Jul. 30 2015)
    • Previously: Leaner P&G increases productivity (Jul. 30 2015)
    | Thu, Jul. 30, 11:42 AM | 32 Comments
  • Wed, Jul. 22, 9:14 AM
    • The National Retail Federation lowers its forecast for 2015 retail sales to 3.5% from 4.1%.
    • The organization is playing some catch-up after recent retail sales reports have disappointed.
    • The NRF pegs retail sales growth at 2.9% in 1H and projects a 3.7% gain over the next five months.
    • Factors which have cut into sales this year include a strong U.S. dollar and a "deflationary" retail environment this year, says NRF Chief Economist Jack Kleinhenz.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, IYC, FXD, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, PEZ, UGE, SZK.
    | Wed, Jul. 22, 9:14 AM | Comment!
  • Tue, Jul. 14, 1:39 PM
    • The question of when millennials will open up their checkbooks and stop sharing is posed by Bobbi Rebell in a Reuters piece.
    • The generation seems to unabashedly share houses (AirBnb), cars (Uber), car rentals (Zipcar), and entertainment services (Netflix).
    • Some think millennials aren't wired to covet non-electronics possessions, while others attribute the trend to a tight market for recent college graduates with high student loan balances.
    • The authors of Millennial Majority argues the latter in making the case spending by millennials will pick up dramatically as their resources improve.
    • One sector desperately looking for a millennial bounce is apparel which continues to trail broad retail. Companies such as Gap (NYSE:GPS), L Brands (NYSE:LB), Abercrombie & Fitch (NYSE:ANF), and Ann (NYSE:ANN) have had a few misfires due to the peculiarity of the group.
    • The oldest millennials are now in their lower thirties which should mean the question will be answered soon.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, IYC, FXD, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, UGE, PEZ, PSL, PSCC, PSCD, SZK
    • Previously: Retail sales: No help from department stores (Jul. 14 2015)
    • Previously: June Retail Sales miss expectations (Jul. 14 2015)
    | Tue, Jul. 14, 1:39 PM | 17 Comments
  • Fri, Jul. 10, 4:11 PM
    | Fri, Jul. 10, 4:11 PM | 2 Comments
  • Wed, Jul. 8, 3:46 PM
    • Notable about today's market selloff - the Dow, Nasdaq, and S&P 500 are lower in the area of 1.5%. - is its spread to the usual ports in a storm. The utilities (XLU -0.6%) and REITs (IYR -0.6%) are outperforming, but still lower even as interest rates slide lower.
    • Any green at all is very difficult to find in a check of the heat map for the S&P 500.
    • Defensive sectors like consumer staples (XLP -1%) and health care (XLV -1.5%) aren't being spared either.
    | Wed, Jul. 8, 3:46 PM | Comment!
  • Fri, Jun. 19, 2:10 PM
    • Consumer Staples Select Sector SPDR (NYSEARCA:XLP) announces quarterly distribution of $0.302.
    • 30-Day Sec yield of 2.44% (as of 06/17/2015).
    • Payable June 29; for shareholders of record June 23; ex-Div. June 19.
    | Fri, Jun. 19, 2:10 PM | Comment!
  • Tue, Jun. 16, 3:42 PM
    • The Consumer Staples ETF (NYSEARCA:XLP) is up 1.1% to outpace broad market averages.
    • The rally is due in part to Coty's aggressive play to land Procter & Gamble's beauty assets which has given some life to a list of names in the sector.
    • Bank of America Merrill Lynch has also called the staples sector undervalued.
    • Related ETFs: PSL, PSCC.
    • Previously: Coty acquires beauty product lines from P&G for $12B (June 15)
    | Tue, Jun. 16, 3:42 PM | Comment!
  • 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.
    | Mon, May 18, 1:07 PM | 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.
    | Sat, May 16, 10:28 AM | 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.
    | Wed, May 13, 8:54 AM | 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
    | Fri, Apr. 24, 8:44 AM | 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)
    | Wed, Apr. 22, 1:20 PM | 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
    | Mon, Apr. 13, 4:53 AM | 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).
    | Thu, Apr. 2, 7:35 AM | 7 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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