Consumer Staples Select Sect. SPDR (ETF) (AMEX:XLP)

CAPS Rating: 3 out of 5

Seeks to replicated the total return of the Consumer Staples Select Sector of the S&P 500 Index. It unbundles the benchmark S&P 500 and gives the investor ownership in particular sectors of industries represented by a specified Select Sector Index.

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Player Avatar slimjohn (38.90) Submitted: 10/3/2007 11:07:02 AM : Underperform Start Price: $24.36 XLP Score: -49.46

consumer is hurting

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Member Avatar AJL203PSU (65.51) Submitted: 11/12/2007 9:53:49 AM
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You understand that consumer staples means things like shampoo, dish soap, paper towels etc. right? Not Rolex watches.

Member Avatar slimjohn (38.90) Submitted: 2/8/2008 6:44:37 PM
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I understand. The point is the costs are increasing rapidly due to higher energy and commodity costs. These companies will not be able to force cost increases through and therefore are at serious risk for margin compression.

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