Consumer staples stocks are performing a bit better than the broad market on Tuesday. Major indexes are in retreat over inflation and higher interest rate concerns.
Packaged foods stocks Bridgford ( BRID ) +4.49% , Farmer Bros. Co. ( FARM ) +1.26% , Real Good Food Company ( RGF ) +0.88% , and J.M. Smucker ( SJM ) +0.45% were all actually higher in early trading.
Kroger ( KR ) was also in positive territory with a 0.89% gain and Procter & Gamble ( PG ) was the only Dow stock not showing a loss as investors took refuge in dividend-paying stocks seen as defensive plays.
August CPI came in hotter than anticipated with CPI Y/Y rising to 8.3% compared to the projected 8.1%. Core CPI Y/Y also rose to 6.3% versus the expected 6.1%. With the high inflation read, Fed Fund Futures are now pricing in a 20% chance of a 100 basis point Fed hike and an 80% chance of a 75 basis point rate hike.
Read more about the broad market reaction to the CPI print.
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Investors take shelter with some consumer staples stocks after inflation