Stock Up on Staples
Published 7/06/2011 4:45 p.m. EDT
Investors seem more willing to put the temporary issues facing the global economy behind them and concentrate on the recent equity upswing. While concerns about Portugal's downgrade, European debt problems and Chinese inflation certainly made headlines, these short-term fears weren't enough to sink consumer-driven stocks today.
Leaders in today's market included stocks like Union Pacific (UNP), Costco (COST), DuPont (DD), Intel (INTC) and Caterpillar (CAT). While some of these firms market consumer necessities, others -- like INTC and CAT -- mirror economic growth.In the short term, particularly during this holiday-shortened trading week, investors are going to have to keep dealing with the economic concerns abroad that are making headlines. Watching equity performance, however, it's easy to see that consumers are stronger than many analysts imagine and are looking ahead to a longer-term recovery. I continue to be bullish on well-balanced consumer-driven funds like the SPDR S&P Retail ETF (XRT), staple ETFs like the SPDR Consumer Staples (XLP), and even consumer discretionary aimed funds like the PowerShares Leisure and Entertainment ETF (PEJ). At the time of publication, Dion Money Management had no holdings in the stocks mentioned.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV