Sector Update: Consumer

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Consumer stocks were higher, with shares of consumer staples companies in the S&P 500 adding about 0.5%. Shares of consumer discretionary firms in the S&P 500 were up 0.4%.

In company news, Liberty Media ( LMCA ) shares rose Friday after the cable television company controlled by John Malone late Thursday abandoned its bid to acquire satellite radio broadcaster Sirius XM ( SIRI ) and announced plans to create a pair of new tracking stocks containing LMCA's stake in SIRI and other media properties.

"In light of the tracking stock distribution, our offer for Sirius XM is no longer applicable," LMCA Chief Executive Greg Maffei said in prepared remarks last night. LMCA in January proposed exchanging non-voting Class C shares with an assumed value of $3.86 each for each SIRI share it already didn't own. LCMA already owns about 53% of SIRI stock and would have paid another $10.4 billion in stock for the remaining minority stake.

As proposed, LMCA shareholders will now receive one share of the company's new Liberty Broadband Group, reflecting the company's stakes in Charter Communications ( CHTR ), Time Warner Cable ( TWC ) and geo-location technology company TruePosition. They're also in line to receive four shares of the new Liberty Media tracking stock that will hold its equity positions in SIRI, Live Nation Entertainment ( LYV ), Barnes & Noble (BKS) among others.

LMCA shares were up nearly 8% at $136.09 apiece in recent trade, earlier topping out at $137.96 a share. The stock has a 52-week range of $107.07 to $159.33 a share. SIRI shares also rose, climbing 2.7% to $3.46 in mid-day trading.

In other sector news,

(+) ULTA, (+6.9%) Earns $1.09 per share in Q4, beating Capital IQ consensus by $0.02. Revenues rises 14.4% to $868.1 mln, topping estimates by $12.85. Projected Q1 EPS trails Street view by at least $0.04 per share. Revenue guidance in-line with estimates.

(-) ARO, (-14.1%) Hires Barclays to accelerate process of identifying stores for closures. Swings to Q4 net loss of $0.35 per share, reversing $0.24 profit last year and coming in $0.04 wider than analyst estimates. Revenue declines 16% to $670 mln, missing consensus by $15 mln.

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) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
Referenced Symbols: LMCA , SIRI , CHTR , TWC , LYV

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