uploads///supermarket _

How US-China Trade Tensions Have Affected the Consumer Sector

By

Apr. 10 2018, Updated 4:44 p.m. ET

What’s happened in the consumer sector

US-China trade war tensions continued to affect the consumer sector last week. The S&P 500 (SPY) fell 1.4%, with all of its sectors being affected by the technology sector slide as well. However, the retail sector gained last week.

Last week, China retaliated against proposed US tariffs on $50 billion in Chinese goods, applying tariffs to major American imports such as soybeans, planes, cars, beef, and chemicals. This retaliation escalated fears of a US-China trade war, affecting most S&P 500 sectors. The trade war could affect the consumer staples and discretionary sectors, specifically the food and beverage, agricultural, aircraft, and automobile sectors.

Consumer staples and discretionary companies’ stocks also fell last week. Consumer staples fell 0.28%, led by a decline in most stocks. Some meat companies benefited from lower soybean prices.

The consumer discretionary sector fell 0.66%. After releasing earnings results, Lennar (LEN) rose 4.5%, while CarMax (KMX) fell 2.6%. According to a FactSet report on April 6, based on the results of 23 companies, the S&P 500’s earnings are expected to grow 17.1% in 1Q18.

Article continues below advertisement

Many consumer sector-based ETFs also fell last week, with the Consumer Discretionary Select Sector SPDR ETF (XLY) falling 0.6% and the Consumer Staples Select Sector SPDR ETF (XLP) falling 0.40%. In contrast, the SPDR S&P Retail ETF (XRT) rose slightly, by 0.43%. In 2018, the S&P 500 Consumer Discretionary has risen 2.1%, outperforming the S&P 500 and the S&P 500 Consumer Staples, which have fallen 2.6% and 8.0%, respectively.

Advertisement

More From Market Realist

  • Businesswoman looking out a window
    Company & Industry Overviews
    Shifting Focus: Three Women Investing Funds in 2021
  • Aol logo on office building,
    Company & Industry Overviews
    What We Know About Apollo Global Management, New Owners of AOL and Yahoo
  • Chick-fil-A sign
    Company & Industry Overviews
    Why It Only Costs $10K to Own a Chick-fil-A Location
  • Beyond Meat Burger 3.0
    Company & Industry Overviews
    How Is Beyond Burger 3.0 Different and Will It Bring BYND Stock Up?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.