And you thought consumer staples stocks were a beacon of safety during rising periods of market volatility.
The S&P 500 Consumer Staples Index was down for its fifth straight session on Tuesday, despite a better than expected earnings report from beverage giant Coca-Cola (KO - Get Report) . For some on Wall Street, Coke's report disappointed in the area of pricing power both in the U.S. and Europe. The street was also letdown by weak sales in water, sports drinks and juices.
Couple Coke's misses with lingering concerns over slow growth in the center-aisle of supermarkets and 10-year yields climbing beyond 3% for the first time dating back to 2014 (bad for highly leveraged consumer staple companies), and investors saw little reason to rotate into the sector. Coke's shares dropped 2.4%, Mondelez (MDLZ - Get Report) declined 2%, and Dr. Pepper Snapple Group (DPS fell 1%.