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Sector Update: Consumer
By: MT Newswires
Consumer stocks are mostly higher with shares of consumer staples companies in the S&P 500 gaining less than 0.1%. Shares of consumer discretionary firms in the S&P 500 are ahead about 0.3%.
In company news, Cooper Tire & Rubber ( CTB ) has reversed course dramatically today, recently trading about 4.9% higher at $24.10 a share and touching $24.44 after earlier sliding to a 4% decline and a day low $22.08 after axing plans to merge with Apollo Tyres, saying financing for the deal is no longer feasible after a valuation disagreement with its Indian rival.
CTB board chairman and CEO Roy Armes said during a Monday webcast his company never received a new offer from Apollo that came with committed financing and that presented "unreasonable risk" for his company.
Other CTB executives are vowing to pursue a $112.5 million reverse termination fee and other possible damages from Apollo, adding they do not believe the company owes Apollo a $50 million termination fee that was part of the initial agreement.
In other sector news,
(+) DIS, (+2.6%, hit record highs) Guggenheim Securities upgrades shares of the media conglomerate to Buy from Neutral.
(-) CBRL, (-1.1%) Rejects efforts by Sardar Biglari to force the restaurant chain to begin a sales process, with the board stating the company's existing business strategy is best course of action.