Consumer staples favorites Kroger and Coca-Cola fall as investors go on the offensive

Consumer staples stocks faded on Tuesday as investors moved back into favorite names in the tech sector. While tariffs and the tax bill are still major considerations, the S&P VIX Index was down 3% as analysts pointed to generally positive U.S. economic data that could set the stage for interest rate cuts.

The offensive positioning by investors sent Kroger (KR) down 2%, while Coca-Cola (KO), Kimberly-Clark (KMB), Colgate-Palmolive (CL), and Kimberly-Clark (KMB) were all off more than 1%.

Still, some analysts are making the case that the consume staples sector is an attractive place to park funds during the ongoing trade battle. In terms of valuation, the Consumer Staples Select Sector SPDR Fund ETF (NYSEARCA:XLP) trades at 19.9X earnings estimates for the next 12 months, below the S&P 500, which trades for just 21.4X. Barron’s noted that the gap that is more than a full point greater than the average five-year discount to the market benchmark of 0.3 points.