US Equities are showing mixed action of late. On Friday, the NASDAQ took a turn to move lower for two consecutive days at
close of week. Many extended growth stocks stumbled. Health Care Equipment, and Software sector are still very hot and have logged
solid gains for this year but this week's action seems to be indicating that investors got a bit defensive. Action
in beaten down sectors like Utilities and Consumer Staples was positive.
The S&P 500 Tracking ETF - SPY is up 2.95% for the year so far. The NASDAQ 100 Tracking ETF - QQQ has risen 12.56% this year.
Interestingly, the Dow 30 Tracking ETF - DIA is down 0.68% for this period. This divergence is really striking.
This week our focus is turning to Church & Dwight, Inc. - CHD which logged impressive price action. CHD broke above a 10-week consolidation
and touched a new 52-week high but pared some of its gains to close at $50.63 which is around the mid-point of the price range this week.
Despite giving back some gains, we think the price action is impressive.
CHD makes a variety of household products including Toothpastes, Household Cleaners etc. The company is expected to release
second quarter earnings on August 2nd and Q-o-Q earnings are anticipated to show an increase. Y-o-Y earnings are also
projected to be higher.
The Consumer Staples and related stocks had been laggards for many months now and if investors start focusing more on
defensive plays in the coming weeks - CHD is one stock self-directed investors may want to monitor.
Self-directed investors will want to perform more research on this stock to see how appropriate this is for their own portfolios.
Good Luck and Happy Investing!