Hormel Foods Corp., based in Austin, Minnesota, produces and markets meat and food products to retail, foodservice, deli, and commercial customers in the U.S. and internationally. The company is approximately 47%-owned by the Hormel Foundation. The Foundation's priorities are to preserve the independence of the company; support the Austin, Minnesota, community; and provide for the financial welfare of the family's heirs. The company has approximately 20,000 employees. The shares are a component of the S&P 500.

Last week was a short one, with markets closed on Friday for the Juneteenth holiday. For the week, the Dow Jones Industrial Average and the S&P 500 both rose 1% and the Nasdaq rose 3%. Year to date, all three indices remain in positive territory, with the DJIA up 7%, the S&P up 10%, and the Nasdaq up 14%. The earnings calendar is quiet as we are in-between reporting seasons. Still, there are a few headliners, including reports from Carnival, Micron Technology, and Darden Restaurants. The big banks, including JP Morgan, Citigroup, and Bank of America, kick off the next reporting season on July 14. The economic calendar is light this week. On Thursday, new data will be released on Durable Goods, Personal Income, and the PCE Price Index. Turning to economic data, gas prices are still elevated but did drop 10 cents last week and are now at an average of $4.05 per gallon for regular gas. Elsewhere, the Atlanta Fed GDPNow forecasts GDP growth of 3.0% for 2Q, higher than the last read of 3.3%. The Cleveland Fed Inflation Nowcast calls for CPI of 4.01% June. Mortgage rates dropped five basis points last week, with the average 30-year fixed-rate mortgage now at 6.47%, according to FreddieMac. The next Federal Open Market Committee (FOMC) meeting is on Wednesday, July 29, and odds are at 0% for a rate cut at that meeting. After that, the next meetings are on September 16, October 28, and December 9. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 8% year to date. The leading emerging market ETF (EEM) is up 29% year to date. U.S. growth stocks are up 3% year to date looking at ETF IWF, while value stocks (IWD) are up 14%. Crude oil prices continue to be volatile. On Friday, oil was down to $77 per barrel, but still up 32% for the year. In other asset classes for the year to date, AGG bonds are down 1%, gold is down 5%, and Bitcoin is down 27%. The U.S. dollar is up 3%, tracking DXY. The VIX Volatility Index was about 17 on Friday, below its historical average of 20. Turning to sector performance, the list from first to worst so far in 2026 and as of June 19 is Information Technology (+26%), Communication Services (+22%), Energy (+19%), Materials (+19%), Industrials (+9%), Real Estate (+6%), Consumer Staples (+6%), Utilities (+3%), Consumer Discretionary (-2%), Financials (-2%), and Healthcare (-4%).

Historically meat-focused, Hormel Foods broadened its lineup to include other protein offerings and became a branded food company. The firm sells its wares through multiple channels, including US retail (61.6% of fiscal 2025 sales), US foodservice (32.6%), and international (5.9%). By product, 73% of fiscal 2025 sales were from perishable food and 27% from shelf-stable. Major brands include Hormel, Spam, Jennie-O, Columbus, Applegate, Planters, and Skippy. Many of these hold the number one or two market share in their respective categories.

Historically meat-focused, Hormel Foods broadened its lineup to include other protein offerings and became a branded food company. The firm sells its wares through multiple channels, including US retail (61.6% of fiscal 2025 sales), US foodservice (32.6%), and international (5.9%). By product, 73% of fiscal 2025 sales were from perishable food and 27% from shelf-stable. Major brands include Hormel, Spam, Jennie-O, Columbus, Applegate, Planters, and Skippy. Many of these hold the number one or two market share in their respective categories.