Markets

Consumer Sector Update for 07/05/2017: DIS,MOV,ORLY

Top Consumer Stocks

WMT +0.04%

MCD +0.48%

DIS -1.73%

CVS -1.01%

KO +0.13%

Consumer stocks were mostly lower in late trading, 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 fell more than 0.3%.

In company news, Walt Disney Company ( DIS ) declined Wednesday, with shares of the entertainment conglomerate dropping over 2% today to a session low of $105.29 each after ratings for its namesake Disney channel as well as its Freeform channel have fallen significantly among their target audiences of children, teens and young adults,

Over the past three years, the Disney and Freeform channels have each lost about four million watchers and now stand to have around 90 million subscribers apiece, according to the Wall Street Journal. Those departures come on the heels of precipitous drops for its ESPN sports programming networks over the past few years as more customers "cut the cord" on cable channels.

To remedy this, Disney executives are looking to improve programming while also making the leap to mobile and online platforms and moving away from cable distribution for direct-to-consumer distribution.

In other sector news,

(+) MOV, Acquires JLB Brands - the owner of the Olivia Burton brand - for around EUR60 mln ($68 mln) in cash. The deal is expected to add to the Movado Group's FY18 per-share earnings.

(-) ORLY, Reports 1.7% increase in Q2 same-store sales, missing forecasts for a 3% to 5% rise due, in part, to "overall weak consumer demand."

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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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