XLP and rivals staples ETFs surged recently when Mondelez International (NasdaqGS: MDLZ), the company behind Oreo cookies and Cadbury chocolates, made a takeover bid for confectionery firm Hershey Co. (NYSE: HSY). However, Hershey has since rebuffed that offer.
Regarding food stocks, “while the short-term trend is still negative, volume is now low enough to suggest everyone who wanted to sell shares has already done so. That sets the stock up for some good news — although in the absence of a technical reversal or final capitulation event, it may be premature to buy shares. Still, it is worth watching,” according to Barron’s.
For more information on the consumer sector, visit our consumer staples category.