The packaged food sector got a lift from a strong beat-and-raise earnings report from General Mills (NYSE:GIS) on Wednesday.
Standing out was the GIS profit guidance with which was for EPS growth of +2% to +5% vs. a prior expectation for 0% to +3%. General Mills (GIS) said stronger sales growth during the quarter was helped by lower than expected volume elasticities and strength with the North American retail business.
"Significant inflation and reduced consumer spending power has led to an increase in at-home eating and other value-seeking behaviors," noted Chief Executive Officer Jeff Harmening.
Just ahead of the Federal Reserve announcement, a shift by investors into dividend-paying stocks and defensive names may also be contributing to the strong day for food names.