Consumer Sector Insights for the Week of February 5–9
What happened in the consumer sector last week?
As earnings season continues, ~68% of the companies in the S&P 500 have reported their earnings for 4Q17. The S&P 500 Index (SPY) wasn’t impressive last week and fell 5.1%. All of the sectors that are part of the S&P 500 continued to decline last week as well.
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Many consumer staples and discretionary companies reported their earnings last week. Consumer staples reported a loss of 5.1% driven by CVS Health (CVS), Molson Coors Brewing Company, Altria Group, Coca-Cola, and Kraft Heinz stock decline. CVS Health shares declined after its earnings report.
The consumer discretionary sector also plunged 4.5% last week after the companies reported their earnings. After the earnings results, Chipotle Mexican Grill (CMG), Expedia (EXPE), Goodyear Tire & Rubber (GT), and Michael Kors Holdings (KORS) stock declined.
According to FactSet’s report on February 9, the revised earnings growth rate for the S&P 500 is 14.0% for 4Q17.
Consumer sector-based ETFs had a disastrous week. Many of the stocks declined and impacted the ETFs’ overall performance. The SPDR S&P Retail ETF (XRT) was the top loser last week—it fell 1.6%. The Consumer Staples Select Sector SPDR ETF (XLP) and the Consumer Discretionary Select Sector SPDR Fund (XLY) also fell 4.9% and 4.5% in the week ending February 9.
For 2018, the S&P 500 Consumer Discretionary Index (2.2%) has outperformed the S&P 500 Index (loss of 2.0%) and the S&P 500 Consumer Staples Index (loss of 5.9%) on a year-to-date basis.