Have The Consumer Staples Peaked?
Nicholas Santiago | May 30, 2013 12:26AM ET
Yesterday afternoon, the leading consumer staple stocks were declining sharply lower on the trading session. It is important to note that this important industry group has been leading the major stock indexes higher since August 2011. Most of the leading stocks in this sector pay a dividend and many investors own these stocks for the income that they provide. It seems that many investors now believe that these stocks are fully valued at this time. The dividend yield for the leading consumer staples stocks is just over 2.0 percent, this is now the same yield that the 10-year U.S. Treasury Note is offering. Could this be the catalyst for the decline in the consumer staple stocks?
Some of the leading consumer staple stocks that declined lower yeterday included Colgate-Palmolive Co. (CL), Kimberly-Clark Corporation (KMB), Procter & Gamble Co. (PG), and The Clorox Co (CLX). All of these stocks have sold off from the recent highs with an increase in volume. This is usually an indication of lower prices ahead for the sector. When leading sectors begin to roll over with volume it could signal problems will occur with the major stock indexes.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.