Consumer staples, utilities hit as yields climb after inflation data

AES

12/10/2023 17:31

** Shares of consumer staples companies and utilities
dropped on Thursday as U.S. Treasury yields climbed following
high-than-expected inflation data
    ** Benchmark 10-year yield  US10YT=RR  recently up at around
4.65%, rebounding from two-week lows, after data showed that
consumer prices increased in September amid higher costs for
rent and gasoline  US/ 
    ** S&P 500 consumer staples index  .SPLRCS  was down >1% on
Thurs, on track for its second consecutive day of losses
    ** Among biggest losers in SPLRCS are Hormel Foods  HRL.N ,
down 9%, Lamb Weston  LW.N , off 6.5%, and Keurig Dr Pepper Inc
 KDP.O , losing 5%
    ** S&P 500 utilities index  .SPLRCU  sector also down >1%
with Eversource Energy  ES.N  the biggest drag, down 6%,
followed by NiSource Inc  NI.N  and AES Corp  AES.N , both off
>2%
    ** In addition, S&P 500 real estate index  .SPLRCR  dropped
0.8%, with losses to Healthpeak Properties Inc  PEAK.N  and
Alexandria Estate Equities Inc  ARE.N  among the drivers, both
down >3%
    ** Consumer staples, utilities, and REITs (real estate
investment trusts), often referred to as "bond proxies" because
they have reliable dividends, have taken a hit in recent weeks
amid rising yields

 (Reporting by Chibuike Oguh in New York)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))