Consumer stocks are lower today with shares of consumer staples
companies in the S&P 500 retreating 1.8%. Shares of consumer
discretionary firms in the S&P 500 also are down about
In company news, The Walt Disney Co (
) is down 2.3% to near $62.80 a share, sliding as low as $62.47
with Goldman Sachs today removing the media conglomerate from its
Conviction Buy list and dropping it rating for the stock to
Neutral, writing that following a 35% year-to-date run-up in its
share price, the risk/reward ration is no longer as compelling.
According to a new research note, the Goldman analysts believe
the company's ESPN unit - its largest asset - faces significant
overhang resulting from increased competition for advertising
revenue from Fox Sports and other 24-hour cable sports providers as
well as rising costs starting in 2014 to maintain its broadcast
rights to Major League Baseball, NFL Monday Night Football and
college football's BCS Championship games - pressuring DIS' future
margins and per-share earnings.
Goldman is maintaining it 12-month price target at $70 a share
based on 17 times its calendar year 2014 per-share earnings.
In other sector news,
(+) GME, (+6.4%, has hit new year highs) Microsoft scraps new
restrictions for its new Xbox One game consol on selling, sharing
or trading games - a key part of GME's business.
(-) FIVE, (-4.6%) Launches secondary offering of 8.6 mln shares
by selected shareholders, including company executives and board
members. The discount retailer currently has about 54 mln shares