Top Consumer Stocks
Consumer stocks have turned solidly lower in late trade, with shares of consumer staples companies in the S&P 500 declining about 0.7% - giving back a modest gain earlier today - while shares of consumer discretionary firms in the S&P 500 were dropping over 2.6%.
Among consumer stocks moving on news:
(-) Alibaba ( BABA ) dropped to a 16-month low on Wednesday, falling more than 6% to its lowest share price since mid-June 2017 at $137.92 each, after concerns over weaker-than-expected September sales for the Chinese ecommerce colossus prompted a slew of Wall Street analysts to cut their price targets for the company's stock. Morgan Stanley remains the most optimistic about Alibaba's expected price gains this year despite a $20 reduction to $220 a share. KeyBanc pared its price target by $5 to $215, explaining that in addition to worries over Alibaba's core sales, it believes the company's "aggressive" investment in its food-delivery business will likely erode margins. Barclays now has a $210 price target, down $15 from its prior call, while SunTrust lowered its price target by $10 to $195. Deutsche Bank cut its price target by $7 to $189.
In other sector news:
(+) JCPenney ( JCP ) pushed out as much as 16% higher on Wednesday after the department-store retailer announced a multi-year extension of its strategic partnership with Synchrony Financial ( SYF ). The two-decade partnership has produced a private label credit card program and a JCPenney Mastercard Dual Card while Synchrony also has used its data analytics platform to discover new customer insights and further personalizing customer experience.
(+) Nio Inc ( NIO ) climbed another 13% on Wednesday, extending a more than 22% rise during the previous session that followed a regulatory filing showing Scottish fund manager Baillie Gifford acquired nearly 85.3 million American depository shares of Nio, equal to 11.4% of the Chinese electric-car company's outstanding stock. Gifford also owns 7.7% of Tesla ( TSLA ) and is the second largest individual shareholder in the American electric vehicle manufacturer behind company founder Elon Musk.
(-) Sears Holdings (SHLD) dropped to a new, all-time low on Wednesday, sinking over 39% to a worst-ever 35 cents a share following reports the struggling department-store retail has hired M-III Partners to assist with a bankruptcy filing that could be initiated as early as next week.