The U.S. stock market was getting rocked Tuesday, as investors grew wary of the promising trade talks that came out of the G-20 meeting and the inverted 3-year and 5-year treasury yields.
But there's a clear sign of where investors' appetite could soon be headed atop the leader board. The best performers of the day are largely defensive stocks, which tend to perform well during down years in the economy, which many on Wall Street have warned could be 2019.
While the Dow Jones Industrial Average was dropping 799.36 points, or 3.1%, these five stocks held strongest.
Procter & Gamble Co. (PG) rose 0.01%. PG is a consumer staple, a classically defensive type of stock. JJ Kinahan, chief market strategist at TD Ameritrade told TheStreet "Procter & Gamble continuing to perform -- those are things people need."
Johnson & Johnson (JNJ) fell a modest 0.01%. JNJ is another consumer staple.
Verizon Communications Inc. (VZ) , a traditionally defensive stock, fell 0.05%, but was still one of the best performing U.S. stocks.
McDonalds Corp. (MCD) fell 0.06%, although it's a consumer discretionary, a more cyclical stock. This is a rare exception for the leader board Tuesday.
Coca-Cola Co. (KO) was the fifth best performer, falling 0.18%. Kinahan also mentioned Cocoa-Cola could be a good stock to buy while other more cyclical stocks get hurt.
On the yield curve, investors are worried the inversion could indicate a recession is coming soon. But Charlie Ripley, senior investment strategist for Allianz Investment Management, said "the curve could be inverted for quite some time before a recession actually takes place."