Consumer Sector Update for 07/28/2017: MO,SAM,DEST

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Top Consumer Stocks

WMT +0.02%

MCD -0.64%

DIS 0.00%

CVS +1.04%

KO -0.21%

Consumer stocks were sharply lower, with shares of consumer staples companies in the S&P 500 dropping almost 0.9% while shares of consumer discretionary firms in the S&P 500 were posting a 0.7% decline.

In company news, investors Friday drove cigarette-maker Altria Group ( MO ) to a 17-low month, with the company's shares dropping as low as $60.01 each and flirting with falling under $60 a share for the first time since February 2016 after the U.S. Food and Drug Administration proposed new rules that would eventually lower the nicotine levels in cigarettes below addictive levels.

The regulatory framework - which would also regulate nicotine levels in cigars, pipe tobacco and e-cigarettes - will first require extensive public input and hearings before taking effect. Cigarette-makers are expected to oppose the proposal, although Altria officials this afternoon were largely positive in their initial response to the FDA plans.

"We think today's announcement is an important evolution in the agency's approach to regulating tobacco products and a meaningful step forward in developing a comprehensive regulatory policy that acknowledges the continuum of risk," the company said in prepared remarks.

"We supported FDA regulation because, among other things, it created a framework for communication about reduced harm products," it continued, later adding that "reconsideration of the rules and timelines for newly deemed products is an important and timely step in this effort."

In other sector news,

(+) SAM, Q2 EPS of $2.35 cruises past Capital IQ consensus by $0.86 per share. Revenue rises 1.3% over same quarter last year to $247.9 mln, also tops the $222.74 mln consensus.

(-) DEST, Terminates December 2016 merger agreement with Orchestra-Prmaman SA, which continues to own 1.92 mln Destination Maternity shares.

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: MO , SAM , DEST

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