Consumer staples stocks are performing a bit better than the broad market on Tuesday. Major indexes are in retreat over inflation and higher interest rate concerns.
Kroger (KR) was also in positive territory with a 0.89% gain and Procter & Gamble (PG) was the only Dow stock not showing a loss as investors took refuge in dividend-paying stocks seen as defensive plays.
August CPI came in hotter than anticipated with CPI Y/Y rising 8.3% compared to the projected 8.1%. Core CPI Y/Y also rose 6.3% versus the expected 6.1%. With the high inflation read, Fed Fund Futures are now pricing in a 20% chance of a 100 basis point Fed hike and an 80% chance of a 75 basis point rate hike.
Read more about the broad market reaction to the CPI print.