Headquartered in Oakland, California, The Clorox Company (CLX) manufactures and markets consumer and professional products internationally. It has four operating segments: Health and Wellness; Household; Lifestyle; and International. Newell Brands Inc. (NWL) designs, manufactures, sources, and distributes consumer and commercial products worldwide. It has five operational segments: Commercial Solutions; Home Appliances; Home Solutions; Learning and Development; and Outdoor and Recreation.
Concerns over higher inflation and the Fed’s battle against it have caused immense market volatility. Moreover, fears that the persistent macroeconomic headwinds can eventually cause a recession in the U.S economy has also made the investors anxious, resulting in massive stock market sell-offs. The Bureau of Labor Statistics reported that the U.S. consumer price index rose 8.6% last month, the fastest increase since December 1981. However, consumer defensive stocks tend to remain resilient during such market uncertainties due to these companies' near-inelastic demand for products. According to Johnson, a certified financial planner and founder of Delancey Wealth Management in Washington, D.C., investors should consider shifting to consumer staples and utilities as the stock market tumbles.
