Ask Matt: Avoid meat stocks now?

Q: Should I avoid meat stocks now?

A: Hot dog lovers got a big scare Monday. The World Health Organization said eating processed meats can cause colorectal cancer. But investors don't seem to mind.

Shares of most of the big meat producers hardly flinched at the WHO's study, which called meat a cancer risk along with cigarettes. Hormel Foods (HRL), the king of processed meat including Spam, fell just 71 cents, or 1%, to $67.62. Kraft Heinz, maker of Oscar Mayer, fell just $1.17, or 1.5%, to $76.81. Meat processor Tyson fell 5% to $45.10 - but it wasn't due to the WHO, but a downgrade of the stock by JPMorgan to "neutral" from "overweight."

The market's muted response, amid what appeared to be a strong warning from a health agency, shows its much too soon to worry the WHO's warning will have a direct hit on profit. The WHO's study says the danger from processed foods is small and that it increases along with greater consumption. It's unclear how much consumers will alter consumption. It's also important to note that these big meat producers don't just sell red meat, but offer a variety of meat products. While Hormel is a large bacon producer, a meat that was singled out by the WHO, it also processes chicken and turkey.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.