Consumer Sector Update for 04/06/2018: TSG, LUV,NEWM

Top Consumer Stocks

WMT -0.75%

MCD -1.00%

DIS -0.77%

CVS -1.27%

KO -0.48%

Consumer stocks were lower this afternoon, although shares of consumer staples companies in the S&P 500 have been outperforming most other industry sectors, falling less than 0.3% while shares of consumer discretionary firms in the S&P 500 were dropping almost 1.2%.

Among consumer stocks moving on news:

- The Stars Group Inc. ( TSG ) was fractionally lower, paring roughly half of a 1% decline soon after the opening bell after the video poker company said it has increased its U.S. dollar- and Euro- denominated first lien term loans by $2.17 billion and EUR500 million, respectively. It also negotiated an extension for the loans until April 6, 2025, and reduced its interest cost by 50 basis points to LIBOR plus 3.00% and Euribor plus 3.25%, respectively. The company's revolving credit facility grew to $225 million from $100 million previously and was priced at LIBOR plus 2.75% with a new April 6, 2025, due date. The Stars Group used $95 million from the new term loans to fully repay its existing, higher-cost dollar-denominated term loan and also is expecting to use another $250 million to pay for its purchase of another 18% equity stake in Crownbet Holdings Pty Ltd and Crownbet's acquisition of William Hill Australia Holdings Pty Ltd.

In other sector news:

- Southwest Airlines Company ( LUV ) had its wings clipped on Friday, with shares of the discount airline falling almost 2%, although the company reported a 3.7% increase in revenue passenger miles during March, rising to 11.7 billion miles flown from 11.3 billion miles in March 2017. Available seat miles last month climbed 2.4% over year-ago levels to 13.8 billion miles. For Q1, revenue passenger miles grew 3.71% to 30.4 billion miles from 29.3 billion miles flown during the first three months of 2017. It also flew 37.4 available seat miles during Q1, rising 1.8% over year-ago levels while its Q1 load factor added 1.6 percentage points to 79.9% during Q1 2017.

- New Media Investment Group ( NEWM ) dropped nearly 8% on Friday after the newspaper publisher said it has priced a public offering of 6 million shares of its common stock at $16.50 a share, or a 4.3% discount to Thursday's closing price. Underwriters also received a 30-day option to buy another 900,000 shares. Net proceeds will fund general corporate activities.

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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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