Not every sector is getting pummeled by the Trump tariff rout that is currently enveloping the broader markets.
Consumer staples — from companies that sell soda to those offering healthcare services and energy — continue to attract their fair share of inflows as traders seek out businesses less tied to economic cyclicality. Case in point in Monday’s highly volatile trading session.
Shares of Coca-Cola (KO) are up 2% on the session, while rival PepsiCo (PEP) is up 3%. Procter & Gamble (PG) shares are up 1.2%. The iShares US Healthcare ETF (IYH) is up slightly, powered by gains in top holdings Merck (MRK) and Amgen (AMGN).
The IYH has tacked on 1.2% in March. The three aforementioned stocks have all notched gains so far in March, compared to a 3.1% drop for the S&P 500.
Watch: Gap CEO is monitoring tariffs every hour
The Utilities Select Sector SPDR Fund (XLU) — comprised of key US utilities like Duke Energy (DUK) and Constellation Energy (CEG) — is up about 1%. It’s relatively unchanged in March, outperforming the S&P 500.
As of 12:20:29 PM EDT. Market Open.
IYH XLU ^GSPC
Health Care (XLV), Utilities (XLU), and Consumer Staples (XLP) are some of the best-performing sectors of the S&P 500 this year.
The shift to staples has been dramatic enough to push the ratio of consumer staples stocks to consumer discretionary stock from a multiyear low to a multi-month high, according to new data from Sundial Capital Research.
“On a relative basis, staples are more defensive, and portfolio managers live in a relative world. And as much as tariff concerns are dominating, the market is growing increasingly concerned about an economic slowdown. So traders are going back to the traditional playbook, irrespective of tariffs, toward staples, in which products will still need to be bought even if the economy slows,” Truist co-chief investment officer Keith Lerner told me.
Meantime, the broader market continues to take it on the chin.
The Dow Jones Industrial Average (^DJI) plunged more than 600 points in afternoon trading Monday as traders grew antsy on the economic growth outlook with Trump tariffs lurking. Trump not ruling out a recession in a Sunday Fox News interview hasn’t helped the increasingly bearish sentiment.
The Nasdaq 100 (^NDX) finished below its closely watched 200-day moving average last week for the first time in nearly two years, per data from Creative Planning chief market strategist Charlie Bilello. The 200-day moving average is a technical measure of longer-term sentiment on an index or stock.
It represented the end of the second-longest uptrend in history for the Nasdaq 100 at 497 days. During this stretch, the Nasdaq 100 notched a 73% return.
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