PSL Overview

EU's Misstep in Tariff Response: French Prime Minister François Bayrou suggested that the European Union may have incorrectly included American bourbon in its retaliatory tariffs against U.S. products, indicating that the measures were based on outdated information.

Escalating Trade Tensions: The trade conflict intensified as President Trump imposed 25% tariffs on steel and aluminum imports, prompting the EU to announce counter tariffs on $28 billion worth of U.S. goods, while Trump threatened a 200% tariff on all alcoholic imports from the EU.

Financial Performance: Casey's General Stores reported a strong third-quarter FY24, with revenue of $3.90 billion surpassing expectations, same-store sales up 3.7% year-over-year, and EBITDA increasing by 11.4%. The company also announced a quarterly dividend of $0.50 per share.

Future Outlook: The company anticipates an 11% increase in EBITDA for FY25, plans to add approximately 270 stores, and projects same-store inside sales growth of 3% to 5%, while fuel gallon sales may fluctuate between a decline of 1% to an increase of 1%.

Dividend Announcement: Invesco DWA Consumer Staples Momentum ETF (PSL) will pay a dividend of $0.2084 on December 27, with shareholders of record on December 23 and an ex-dividend date also on December 23.

Market Trends: Hedge funds have been consistently buying consumer staples for five consecutive weeks, indicating a positive outlook for the sector according to Goldman Sachs.

Financial Performance: BJ's Wholesale Club reported a 4.9% year-over-year revenue growth to $5.205 billion, exceeding analyst expectations, with adjusted EPS of $1.09 also beating estimates. Membership fee income rose by 9.1%, and digital sales increased by 22%.

Market Outlook: The company reaffirmed its fiscal 2024 adjusted EPS guidance of $3.75 to $4.00 and expects comparable club sales (excluding gasoline) to grow by 1% to 2%, despite shares dropping 7.3% in premarket trading.

Share Repurchase Announcement: US Foods Holding Corp. is repurchasing $211 million in shares at $52.28 each, part of a larger $1 billion buyback program, with CEO Dave Flitman expressing confidence in the company's undervalued stock.

Financial Performance: The company reported second-quarter sales of $9.70 billion, exceeding analyst expectations, and maintained its FY24 guidance for net sales and adjusted earnings per share.