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Consumer Staples Select Sector SPDR ETF (XLP)

- NYSEARCA
  • 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
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  • 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
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  • 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
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  • Thu, Feb. 12, 11:22 AM
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  • 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
  • Tue, Jan. 27, 10:28 AM
    • The Consumer Staples ETF (NYSEARCA:XLP) is only down 1.01% despite the drag exerted by Procter & Gamble (-3%) and Coca-Cola (-1.5%) which account for over 22% of the fund's holdings.
    • The fund also holds drugstore chains CVS Health and Walgreen Boots Alliance which pulls in a healthcare aspect to the total return of the consumer staples tracker.
    • Tobacco stocks also sometimes zig when staples zag to help smooth out returns.
    • Previously: Procter & Gamble misses by $0.07, misses on revenue
    • Previously: Foreign exchange takes a toll at Procter & Gamble
    | Comment!
  • Tue, Jan. 27, 9:13 AM
    • The read from Redbook on retail sales through a good portion of the month indicates sales might decline around 3% M/M from December after the impact of auto and gas are backed out.
    • The December retail sales showed a small decline from November.
    • The Weekly Retail Chain Store Sales Index released today fell 0.6% W/W in another indication of softness in the retail sector, although on a year-over-year comparison the reading was up 2.6%.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, UGE, RCD, PSCD, SZK
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  • Fri, Jan. 16, 5:57 PM
    • Frustrations are mounting over stalled contract negotiations between West Coast dockworkers and port owners, prompting 175 industry groups representing agriculture, manufacturing, retailers, and other import/export operations to send a letter to the two sides urging them to solve their differences and agree to a contract.
    • While both sides agreed earlier the month to use a federal meditator, the latest public sniping has raised fears that the ports are heading toward a shutdown, which some say could cost the economy $2B/day if it lasts 20 days.
    • Midwest manufacturers have had to slow and even stop production due to delays in receiving components, and retailers are experiencing delays in early spring merchandise, including products for Valentine’s Day and Easter; the impact on the agricultural sector also has been dramatic, hurting producers from Washington apple growers to Idaho potato farmers.
    • A Cowen report this week said that while lower gas prices could boost consumer spending, retailers face increased shipping costs due to the port slowdown.
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC
    | 1 Comment
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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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