Why Consumer Staples Stocks Surged Today
Shares of consumer staples stocks were rising broadly today on news that Amazon was seeing unprecedented demand for essential items, and was hiring 100,000 people as a result. The e-commerce giant also said that it would shift its warehouses to stock and ship necessities like food and cleaning products since demand for those has spiked during the COVID-19 coronavirus crisis. The news comes amid reports that supermarkets are experiencing a run on goods including toilet paper and basic foods.
This all signals that demand has spiked for the kind of food items and household products that consumer-staples companies produce. As a result, the sector gained broadly today. General Mills (NYSE: GIS) closed up 12.4%, Colgate-Palmolive (NYSE: CL) jumped 12.6%, Kellogg (NYSE: K) rose 10.7%, and Procter & Gamble (NYSE: PG) jumped 9%.
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Source Fool.com
