|Bid||51.51 x 40700|
|Ask||51.52 x 3200|
|Day's Range||51.42 - 51.87|
|52 Week Range||48.33 - 58.95|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.48|
|Expense Ratio (net)||0.13%|
Stocks fell dramatically Monday morning only to claw their way back. Yahoo Finance's Adam Shapiro, Seana Smith and Andy Serwer talk to Jimmy Lee, CEO of Wealth Consulting Group.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close. Despite worries about trade wars and an economic slowdown across the board, the U.S. job market is making great strides. In the last month of 2018, the U.S. economy added 312,000 jobs, nearly double the figure expected by analysts. The showing for November itself was revised up by 21,000 to 176,000. At the same time, hourly earnings increased by 0.4% in December on average compared with 0.3% expected by pundits. Such a rise in hourly earnings has not been seen since September. Meanwhile, the unemployment rate jumped from 3.7% to 3.9%, a sign the labor market is expanding and more people are joining the labor force. Amid market turbulence, Federal Reserve Chair Jerome Powell attempted to ease market concerns, saying he was aware of the risks stemmed from raising interest rates too quickly and was listening carefully to what the markets had to say. Stocks posted a strong rally this week. On Thursday, Powell spoke again, saying the Fed can be patient on monetary policy given the stable inflation. The Federal Reserve minutes revealed that policymakers have become more dovish, finally acknowledging the risks related to a slowdown in China, trade wars and political turbulence. U.S. non-manufacturing purchasing managers’ index (PMI) dropped dramatically in December, from 60.7 to 57.6, signaling a deteriorating sentiment. U.S. crude oil inventories declined by 1.7 million barrels in the week ended January 4, following two straight weeks of flat gains. Stockpiles have not seen a weekly rise since the end of November when they ended a ten-week streak of gains. U.K. economic output expanded 0.2% in November, beating expectations of 0.1%. The upbeat figure comes as the country still struggles to reach a Brexit solution, with the government and the Parliament at odds. An increasingly likely scenario is to push back the March 29 exit date to avoid chaos.
Altria Stock Falls on Cowen's Downgrade ## Cowen’s downgrade Today, Cowen and Company downgraded Altria Group (MO) from “outperform” to “market perform” due to the accelerating decline in Altia’s cigarette sales. Also, Cowen lowered its 12-month price target from $74 to $53. The new price target represents an upside potential of 5.4% from its January 4 closing price of $50.30. As CNBC reported, Cowen expects Altria’s cigarette volumes to decline at an annual rate of 7.3% over the next five years, compared to a decline of 3.1% over its previous five years. Weighing in on Altria’s recent investment in e-cigarette manufacturer Juul, Vivien Azer of Cowen said, “Although the Juul investment was likely the right move, Altria is incentivized to accelerate cigarette industry volume declines.” ## Other analysts’ recommendations Of the 17 analysts that cover Altria, 52.9% have given the stock a “buy” rating while 35.3% favor a “hold” and 11.8% favor a “sell” rating. On average, analysts have set a 12-month price target of $59.29, which represents an upside potential of 17.9% from its January 4 closing price. On December 21, Citigroup downgraded Altria from “neutral” to “sell” and also lowered its price target from $67 to $45. On the same day, Stifel also cut its price target from $70 to $59. ## Peer comparisons Among the 19 analysts who follow Philip Morris International (PM), 52.6% recommended a “buy,” 36.8% recommended a “hold,” and 10.5% recommended a “sell.” On average, analysts have a 12-month target price of $91.00, which represents an upside potential of 30.8% from its stock price of $69.55. ## Stock performance Cowen’s downgrade appears to have led the company’s stock price to fall. As of 12:20 AM ET today, Altria was trading 2.2% lower. Last year was a tough year for Altria. Since the beginning of 2018, the company’s stock price has declined 29.6%. Meanwhile, peer Philip Morris has returned -34.2%. The broader comparative index, the Consumer Staples Select Sector SPDR ETF (XLP), which has invested 8.2% of its portfolio in cigarettes and tobacco companies, has declined 9.6%.
Why CHD and MKC Outperformed Broader Markets ## CHD and MKC stock rose more than 30% last year The Consumer Staples Select Sector SPDR ETF (XLP) underperformed broader markets last year, dragged down by weakness in tobacco and packaged food stocks. Household and personal care product manufacturer stocks, impacted by soft demand and input and transportation costs weighing on the companies’ financials, didn’t impress, either. Despite the gloom, Church & Dwight (CHD) and McCormick (MKC) stock generated stellar returns and outperformed peers and broader markets considerably. Whereas McCormick stock rose 36.6% last year, most packaged food manufacturer stocks fell by a double-digit percentage rate, with Kraft Heinz (KHC), Conagra Brands (CAG), General Mills (GIS), Campbell Soup (CPB), and Kellogg (K) stock falling 44.7%, 43.3%, 34.3%, 31.4%, and 16.1%, respectively. Similarly, Church & Dwight outperformed other household and personal care product manufacturers last year. Whereas CHD stock rose 31.1%, Procter & Gamble (PG) was flat, and Colgate-Palmolive (CL) and Kimberly-Clark (KMB) stock fell. Clorox (CLX) had a decent year, ending it on a positive note. ## What’s behind CHD’s and MKC’s uptrend? Despite challenges, Church & Dwight and McCormick reported impressive numbers that supported their stock. Their focus on innovation, underlying business strength, and benefits from acquisitions drove their top and bottom lines. Given their recent uptrend, CHD and MKC don’t qualify as “value buys” at this juncture. However, we expect the companies’ improved organic volumes and pricing, new product launches, and cost-saving measures to continue to drive their sales and earnings. Continue to Next Part Browse this series on Market Realist: * Part 2 - Where Church & Dwight Stock Could Be Headed * Part 3 - What’s in Store for McCormick Stock? * Part 4 - What Wall Street Recommends for MKC and CHD Stock
Walmart (WMT) shares underperformed its peers in 2018. Pressure on Walmart’s margins from the Flipkart deal and higher fulfillment costs remained a drag. Walmart stock fell 5.7% in 2018. In comparison, Costco (COST) and Target (TGT) shares increased 9.5% and 1.3%, respectively. Kroger (KR) stock remained roughly flat.
As of December 27, Altria Group (MO) was trading at $48.70—a fall of 21.8% since the announcement of its third-quarter earnings on October 25. Altria is 32.8% lower than its 52-week high of $72.45. Altria’s shipment volume of smokeable products has declined.
Philip Morris International (PM) was trading at $69.08 on December 21, close to its 52-week low of $68.74 and 61.0% below its 52-week high of $111.25. The stock has fallen 18.3% since Philip Morris announced its third-quarter results on October 25.
Pepsi parent PepsiCo Inc. said Friday that Albert Carey, chief executive of PepsiCo North America, will retire at the end of March 2019 after three years in the role, and about 38 years at the company. Separately, the company said Vivek Sankaran, who is currently chief operating officer of Frito-Lay North America, will become CEO of that unit, while Kirk Tanner, who is COO of North America Beverages, will be the units CEO. PepsiCo's stock rose 1.5% in premarket trade. It has lost 4.1% over the past three months, while the SPDR Consumer Staples Select Sector ETF has declined 7.8% and the S&P 500 has shed 15.8%.
Wells Fargo equity derivatives strategist Pravit Chintawongvanich says that defensive sectors have been the beneficiaries of large asset inflows but that a broad pullback might suggest the sector rotation may be coming to an end, according to a detailed analysis in Barron’s. This week saw the utilities and real estate sectors join in, off 3.2% and 3.8%, respectively, since last Thursday.
Another concerning statistic that came to light during the Bank of America Merrill Lynch’s Fund Manager Survey was that investors made the largest ever one-month rotation into bonds (BND). As reported by CNBC, the survey said, “Investors are approaching extreme bearishness…This month’s survey [found] the biggest ever one-month rotation into the asset class.” The bond allocations rose 23 percentage points to net 35% underweight, the highest allocation to bonds since the Brexit vote in June 2016. The allocation to bonds also rose amid a drop in inflation expectations.
Shares of General Mills Inc. jumped 3.5% in premarket trade Wednesday, after the parent of Cheerios, Haagen-Dazs and Yoplait branded consumer foods reported a fiscal second-quarter profit that beat expectations, although sales came up a bit shy. Net earnings for the quarter to Nov. 25 fell to $343.4 million, or 57 cents a share, fro $443.8 million, or 74 cents a share, in the same period a year ago, as lower operating profit and higher net interest expenses were partially offset by a lower tax rate. Excluding non-recurring items, adjusted earnings per share came to 85 cents, above the FactSet consensus of 81 cents. Sales increased 5.1% to $4.41 billion, below the FactSet consensus of $4.51 billion. North America retail segment sales fell 3% to $2.68 billion, missing the FactSet consensus of $2.73 billion, and convenience stores and foodservice sales were flat at $514 million, compared with expectations of $519 million. The stock has tumbled 38% year to date through Tuesday, while the SPDR Consumer Staples Select Sector ETF has shed 7.5% and the S&P 500 has declined 4.8%.
Seemingly at every turn, we can find any catalyst for a market downturn: rising tensions in Washington, unrest in the European Union and the ongoing Huawei controversy, just to name a few. On the other hand, secular investments such as consumer-staples stocks — as based on the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) — have comparatively skyrocketed. Using the sector benchmark Utility Select Sector SPDR Fund (NYSEARCA:XLU), we find that this typically boring market segment has jumped to double-digit territory since the beginning of July.
The Consumer Staples Select Sector SPDR ETF (NYSEArca: XLP), the largest exchange traded fund tracking the consumer staples sector, and rival cap-weighted staples ETFs traded slightly higher Thursday on ...
Will 2019 Be Better for Altria and Philip Morris? 2018 has been tough for tobacco companies. The increased anti-tobacco regulations, the declining smoking population, and the rising competition in the RRP (reduced-risk products) space have been putting pressure on tobacco companies.
Defensive sectors and the related exchange traded funds have recently been strutting their stuff. Over the past six months, the previously downtrodden consumer staples sector is easily outpacing the broader ...
J.M. Smucker Co. said Friday it was voluntarily recalling certain lots of 9Lives Protein Plus wet canned cat food, citing possible low levels of thiamine, or Vitamin B1. Symptoms of thiamine deficiency in cats, which can develop after several weeks of a low-in-thiamine diet, could include decreased appetite, salivation, vomiting and weight loss, as well as neurological symptoms such as wobbly walking, circling, falling, seizures and ventroflexion (bending towards the floor) of the neck. The lots being recalled are 9Lives Protein Plus With Tuna & Chicken 4 pack of 5.5 ounce cans, with best-if-used-by dates of March 27, 2020 to Nov. 14, 2020, and 9Lives Protein Plus With Tuna & Liver 4 pack of 5.5 ounce cans with best-if-used-by dates of April 17, 2020 to Sept. 14, 2020. J.M. Smucker's stock fell 0.8% in morning trade. It has lost 8.6% over the past three months, while the SPDR Consumer Staples Select Sector ETF has gained 1.5% and the S&P 500 has lost 6.7%.
It was an ugly day for the stock market on Tuesday as the broader U.S. indices fell sharply across the board. While few stocks were spared from the selling pressure, the defensive Consumer Staples Select Sector SPDR (NYSEARCA:XLP) fared better than the rest. The S&P 500, for example, tumbled more than 3% but the XLP ETF “only” dropped approximately 1.7%.
Apple (AAPL) got a downgrade, and Cirrus Logic (one of Apple’s suppliers)(CRUS) pre-announced a miss for the December quarter. But most eyes were focused on the two-pronged trade war and rate move. Suddenly, the Dow (DIA) was down 800 points, and the Nasdaq (QQQ) dropped as much as 3%. The 10-yr treasury yield dropped as low as 2.88% today, down from a high of 3.24% a month ago. And the prevailing wisdom is that when 10-yr yield drops like that, it is foreshadowing lower economic growth ahead. Add that to the Fed still seemingly about to raise short term rates on Dec. 19th to 2.25%-2.5%, and we are very close to an inverted yield curve, which supposedly predicts recessions.
U.S. stocks finished sharply higher Monday after the market reacted optimistically to U.S. and China over the weekend calling a temporary truce to their trade dispute. The Dow Jones Industrial Average ended up about 290 points, or 1.1%, at 25,826, but had been up by as many as 442 points in early morning action. The S&P 500 index closed 1.1% higher at 2,790, powered by gains in the energy sector, on the back of a surge in crude-oil futures , while the consumer-discretionary sectors also was among the best performing sectors among the S&P 500's 11 on the day. The Nasdaq Composite Index advanced 1.5% at 7,442. However, the fall in the yield of the 10-year Treasury note to below 3% on Friday (bond prices rise and yields fall), may reflect some tepid concerns about the prospects for a firm agreement being achieved by China and the U.S. in the 90-day period from Jan. 1, and the outlook for the domestic economy as the Federal Reserve attempts to normalize interest rate policy.