Consumer Sector Update for 10/03/2016: NFLX,DIS,CAB,COSI

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Top Consumer Stocks

WMT -0.07%

MCD -0.49%

DIS -0.21%

CVS -2.20%

KO -0.49%

Consumer stocks turned mixed this afternoon, with shares of consumer staples companies in the S&P 500 declining almost 0.5% but shares of consumer discretionary firms in the S&P 500 reversing an earlier slide to trade about 0.1% higher.

In company news, Netflix ( NFLX ) shares climbed to their best level in more than four months amid increasing market speculation the streaming video service may soon could be acquired by the Walt Disney Co ( DIS ), or possibly another suitor.

Several analysts were less convinced of a Netflix/Disney tie-up, although Drexel Hamilton analyst Tony Wible nevertheless believes the recent volatility for Netflix shares supports buying the stock, explaining investors may also be buying ahead of its Oct. 17 earnings announcement as well as possible short-covering, according to a Bloomberg report this afternoon.

"You've seen some takeover chatter popping up, but Netflix hasn't shown it wants to be acquired," Wible said. Netflix officials declined comment when contracted by Bloomberg today.

NFLX shares were up more than 4% at $102.73 each shortly before Monday's closing bell, earlier hitting their best level since May at $103.39 a share. DIS shares were down about 0.3% in late trade at $92.60 apiece.

In other sector news,

(+) CAB, Agrees to $5.5 bln buyout offer from privately held Bass Pro Shops, which will pay $65.50 for each CAB share, a 19.2% premium to Friday's closing price. The deal is expected to close before June 30, 2017.

(-) COSI, Nasdaq delists company's stock, effective with the start of trading on Oct. 10, when COSI shares are expected to begin trading on the OTC market.

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: NFLX , DIS ,

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