3 months ago
Stock Market

MarketPulse: Consumer Staples in Play as Traders Turn Defensive

Investing.com - Consumer staples were in demand Tuesday as traders turned to defensive corners of the market on fears of

Investing.com - Consumer staples were in demand Tuesday as traders turned to defensive corners of the market on fears of increased US-China trade tensions.

The White House reportedly is preparing sanctions and indictments against China for hacking and stealing American trade secrets and advanced technologies, The Washington Post reported on Tuesday, citing U.S. officials.

That turned sentiment skittish, pushing investors toward consumer staples, which includes makers of household needs like food, beverages and personal care products.

Campbell Soup (NYSE:CPB) rose 1% a day after reports that its international business, which includes biscuit brand Arnott’s, was catching the eye of Italy's Ferrero, who reportedly values the business at more than $2 billion.

Campbell revealed in August that it would sell its international operations and refrigerated-foods business to shore up its balance sheet and focus efforts on its packaged foods business.

Costco Wholesale (NASDAQ:COST) rose 1.5% ahead of its earnings report due Thursday. The retailer revealed in a preliminary update last week Thursday that comparable sales rose 8.8% in its fiscal first quarter.

Membership renewal metrics like subscriber renewal rates and overall membership income will likely draw in the bulk of investor attention as the wholesale club's performance is underpinned by its membership base.

The Consumer Staples Select Sector SPDR (NYSE:XLP) was up 0.5%.