FSTA News and Press, Fidelity MSCI COnsumer Staples Index From 12/07/22

Summary Expectations surrounding central bank policy, China’s gradual reopening and a lower US dollar are key to investor sentiment in the final stretch of 2022. Central banks have increased interest rates at the fastest rate on record, and there are signs that higher yields are ...

Summary Total nominal retail sales and food-services spending rose 1.3 percent in October after being unchanged in September. From a year ago, retail sales are up 8.3 percent and remain well above the pre-pandemic trend. Nominal retail sales excluding motor vehicle and parts d...

Summary To date, 143 of the 204 companies in our Retail/Restaurant Index have reported their EPS results for Q3 2022, representing 70% of the index. Of those companies that have reported their quarterly results so far, 69% announced profits that beat analysts’ expectations,...

Summary The Refinitiv U.S. Retail and Restaurant Q3 earnings index, which tracks changes in the growth rate of earnings within the sector, is expected to show a weak 1.6% growth over last year’s levels. Even as higher food prices eat into spending power, consumers also have...

Summary FSTA invests in defensive consumer staples stocks. The fund has out-performed in recent times during a recent bear market which is possibly not over. I would argue the fund is roughly fairly valued, while the tide is turning on the business cycle, a new cycle will like...

Summary In today's issue of the 1-Minute Market Report, I examine the market bounce since the October low, and highlight the areas of the market that are leading the way higher. On Thursday, for every stock that was down, there were 26 that were up. For the first time since August...

Summary Amazon’s global exposure is also being hit by macroeconomic issues as rising inflation continues to diminish the consumer’s purchasing power. The much-anticipated “Lord of the Rings” series did help subscription revenue rise to a new high in dol...

Summary Mondelez International, the maker of Sour Patch and Cadbury chocolate, is on track to post stronger revenue than in the previous three years. Similarly, Hershey is on track to post stronger revenue compared to its pandemic and pre-pandemic levels. In collaboration with...

Summary The mismatch between supply and demand within the retail space has reversed in advance of this year’s holiday shopping season. Higher prices that retailers have successfully implemented since the pandemic are not going to reverse entirely. Higher inventory level...

Summary We forecast Halloween candy prices to be up 14% over last year. Purchases of candy (i.e. volumes) have been trending lower since last October, partly in response to rapidly rising prices. Total spending on Halloween candy, at $3.2 billion, is expected to be only 1% abo...