Why Clorox Rose 14.7% This Week
Shares of Clorox (NYSE: CLX) rose 14.7% this week, as the consumer-staples stock appeared to benefit from a decline in long-term interest rates.
Clorox, which could be considered a pandemic stock, has seen a sell-off this year as inflation has risen. That ate into costs, while demand moderated as the pandemic-era boom in cleaning products ebbed. Additionally, a rise in long-term interest rates hurt the stock somewhat, since low-growth, dividend-paying consumer staples stocks are seen as bond proxies by many investors.
Ironically, since the Fed hiked rates aggressively two weeks ago, anticipation of an economic slowdown is actually helping consumer-staples stocks like Clorox this week.
Source Fool.com
