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Consumer Sector Update for 10/10/2018: BABA,JCP,SYF,NIO,SHLD


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Top Consumer Stocks

WMT -0.65%

MCD -0.17%

DIS -2.45%

CVS -0.20%

KO -0.88%

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.

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: BABA , JCP , SYF , NIO , TSLA



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