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Consumer Sector Update for 01/24/2018: YGYI,RCL,SRT,AMZN,JAX


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Top Consumer Stocks

WMT -0.03%

MCD -0.31%

DIS +0.19%

CVS +0.82%

KO +0.99%

Consumer stocks reversed their prior declines this afternoon, with shares of consumer staples companies in the S&P 500 increasing over 0.2% this afternoon while shares of consumer discretionary firms in the S&P 500 were adding almost 0.3% in value.

Among consumer stocks moving on news:

- Youngevity International ( YGYI ) was solidly lower heading into Wednesday's close, sliding as much as 6% lower to a session low of $4.50 a share after the lifestyle company today said it acquired the Gigi Hill handbag and accessories brand and entered into a long-term contract with Gigi Hill co-founder Gabrielle DeSantis to manage the upcoming integration. Youngevity plans to market the new line within its existing fashion and jewelry verticals, believing they provide many strong cross-marketing opportunities. Financial details of the transaction were not disclosed but Youngevity said it expects the new Gigi Hill collection will be available during Q2.

In other sector news:

+ StarTek ( SRT ) rallied Wednesday, increasing almost 33% to a session high of $13.71 a share, after issuing an eight-year warrant to Amazon.com ( AMZN ) to buy up to 4 mln common shares at $9.96 apiece. According to a regulatory filing detailing the companies' agreement, the warrant will vest after Amazon pays StarTek up to $600 mln for commercial services provided to the ecommerce giant under an existing contract with the customer-engagement company. If Amazon fully exercised the warrant, it would own about 19.9% of StarTek.

+ Royal Caribbean Cruises ( RCL ) sailed to a new record high on Wednesday after today reporting above-consensus Q4 results, including net income of $1.34 per share on both a GAAP and non-GAAP basis, beating the Capital IQ consensus by $0.03 per share. Revenue grew 4.7% year over year to $2 bln, also topping the $1.97 bln analyst mean. Looking forward, Royal Caribbean is looking for adjusted FY18 earnings in a range of $8.55 to $8.75 per share. The Street is at $8.65 per share.

- Baidu ( BIDU ) bounced between small gains and losses today after company president Ya-Chin Zhang said the Chinese internet company will likely strike more deals with Netflix (NFLX) to bring some of its shows to China. The companies last year signed a deal calling on Netflix to provide content to Baidu such as its "Stranger Things" television serial.

- J. Alexander's (JAX) fell today after the restaurant chain said shareholders owning around 20% of the company's stock have already signaled their support for its proposed acquisition of Ninety Nine Restaurant & Pub. The company is urging all shareholder vote in favor of the deal.

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

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This article appears in: Business , Commodities
Referenced Symbols: YGYI , SRT , AMZN , RCL , BIDU


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