Sector Update: Consumer

By Staff,

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Consumer shares are generally lower in pre-bell trading as several major retailers, including Macy's ( M ) and Nordstrom ( JWN ), are set to release earnings this week. Today, Lowe's ( LOW ) shares were upgraded to Hold from Sell at Canaccord Genuity this morning. The firm raised its price target to $48 from $28. Lowes is down 0.24% in pre-market.

Pinnacle Foods ( PF ) today announced that it has entered into a definitive agreement to acquire the Wish-Bone salad dressings business from Unilever PLC, in a transaction that is expected to be immediately accretive to Pinnacle. The acquisition, which is subject to customary closing conditions, is expected to be completed in late Q3 or early Q4 2013.

The purchase price of the transaction is $580 million, which will be funded with cash on hand and new debt. Given that the acquisition will be structured as an asset purchase, Pinnacle expects to realize approximately $125 million in tax benefits on a net present value basis. PF is flat at $25.46 in pre-market.

Telsa Motors ( TSLA ) shares are down about than 3% pre-market after an article in Barron's said the stock is likely headed for significant volatility after its price has risen dramatically this year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: JWN , LOW , M , PF , TSLA

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