Consumer Sector Ends Earnings Season with a Mediocre Week



What went down in the consumer sector last week

Last week (May 28–June 1) marked the end of the first-quarter earnings season for the S&P 500 (SPY), which rose 0.49%. Whereas some of the index’s sectors fell last week, others rose.

Consumer staples and discretionary stocks had a mediocre week. The consumer staples sector fell 0.52%, while the consumer discretionary sector rose 0.25% despite some stocks falling after earnings were released. Dollar Tree (DLTR), Michael Kors (KORS), and Dollar General (DG) fell after their earnings releases.

According to a June 1 Factset report, the blended earnings growth rate for the S&P 500 for the second quarter was 18.9%. Consumer sector-based ETFs also had an average performance last week. The SPDR S&P Retail ETF (XRT) and the Consumer Staples Select Sector SPDR ETF (XLP) fell slightly, by 0.09% and 0.44%, respectively. The Consumer Discretionary Select Sector SPDR ETF (XLY) rose 0.39%. This year, the S&P 500 Consumer Discretionary (7.8%) has outperformed the S&P 500 (2.2%) and the S&P 500 Consumer Staples (-13.5%).

Sector updates

Last week, Tyson Foods (TSN) announced that it had entered into an agreement to sell its Sara Lee Frozen Bakery and Van’s businesses to Kohlberg & Company. The stock fell 2.2% last week.

At its annual shareholders’ meeting, Lowe’s (LOW) announced a 17% increase in its quarterly cash dividend to $0.48 per share. The dividend is set to be paid on August 8 to shareholders of record as of July 25.

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