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Consumer Sector Update for 01/30/2017: TPX,GNUS

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WMT +1.15%

MCD -0.01%

DIS +1.22%

CVS +1.14%

KO -0.24%

Consumer stocks were narrowly lower this afternoon, with shares of consumer staples companies in the S&P 500 slipping about 0.1% while shares of consumer discretionary firms in the S&P 500 were sinking about 0.2%.

In company news, Tempur Sealy International ( TPX ) slumped to a four-year low on Monday after Mattress Firm, its largest customer, terminated all of its contracts with the mattress manufacturer, effective last Friday, Jan. 27.

The companies had been in extended talks ever since Mattress Firm said it want several changes to the existing contract terms, including significant economic concessions. They were unable to reach an agreement, however, and the companies expect to fully phase out all interactions by the end of March.

Separately, Tempur Sealy today also said it expects to book record Q4 financial results, including around $770 million in total net sales - up slightly compared with the year-ago period and exceeding the analyst mean looking for around $740.95 million in sales for the three months ended Dec. 31.

The company also sees GAAP net income in a range of $61 million to $63 million. Mattress Firm accounted for about 21% of Tempur Sealy's FY16 sales.

TPX shares were down over 28% at $45.32 apiece shortly before today's closing bell, recovering somewhat from a slide to their worst price since December 2012 at $42.51 a share.

In other sector news,

(+) GNUS, CEO Andrew Heyward responds to price volatility for the company's stock today saying, "I can't control stock prices going up and down. I can, however, focus on growing our business and building assets."

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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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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