Kraft Helps Buoy Consumer Staples ETFs in Sell-Off
August 4th at 10:21am by John Spence
Trader screens were a sea of red Thursday but exchange traded funds tracking the consumer staples sector help up relatively well as Kraft (NYSE: KFT) shares advanced after the company said it plans to split into two entities.
Consumer Staples Select Sector SPDR Fund (NYSEArca: XLP) was down 0.7% in morning trade, while iShares S&P 500 (NYSEArca: IVV) shed nearly 2%.
Stocks were under pressure again Thursday on lingering concerns over Europe’s debt crisis and signs the global recovery is slowing.
Kraft was the lone bright spot in the Dow as the stock gained about 3%. It accounts for 5% of the consumer staples ETF. Kraft said the split would result in a global snacks company and a North American grocery business.
The Dow was down more than 200 points at last check Thursday. [Stock ETFs Fall]
Consumer Staples Select Sector SPDR Fund
