Consumer staples stocks hold up as investors turn defensive amid a global market selloff

Procter & Gamble Company (PG), Coca-Cola (KO), Costco (COST), Walmart (WMT), Philip Morris International (PM), and PepsiCo (PEP) were holding up better than broad stock market averages in early trading on Monday as investors took a more defensive position amid a global market selloff. The bloodbath started in Japan, where the Nikkei 225 Index plunged 13.2% for its worst session since the 2011 Fukushima nuclear meltdown. Adding to the concerns were the BOJ’s steps toward policy normalization, and it has translated into Japan’s world-beating rally this year being wiped out over the last several sessions. Circuit breakers were also activated for South Korea’s Kospi after the index rapidly dropped 8%, while Australia’s ASX 200 slid nearly 4% for its worst session since June 2022. S&P 500 futures were down 3.19% and Nasdaq 100 futures were off 4.84%.

Shares of Procter & Gamble (PG) were up 0.25% and Kroger (KR) tracked 0.42% higher, while the other consumer staples heavyweights showed just very minor drops in the early trading session. The Consumer Staples Select Sector SPDR Fund ETF (NYSEARCA:XLP) was down just 0.41%, compared to the much larger drops seen across most of the consumer discretionary, tech, energy, healthcare, and financials sectors.