Consumer Sector Update for 08/09/2018: PRTY,AMZN,YELP,FOX,FOXA,RAD

Top Consumer Stocks

WMT -0.47%

MCD +0.25%

DIS +0.28%

CVS +0.76%

KO +0.42%

Consumer stocks diverged today, with shares of consumer staples companies in the S&P 500 sinking almost 0.3% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.5%.

Among consumer stocks moving on news:

+ Party City ( PRTY ) was gathering a crowd on Thursday, with investors lifting the retailer's stock as much as 6% higher this afternoon before stopping 30 cents shy of its 52-week high of $16.95 a share, after the specialty retailer said it will start selling certain products on ( AMZN ), significantly expanding its online presence beginning with a "curated product assortment" largely tilting to Halloween costumes and later extending into the Christmas and New Year holidays. Separately, the company also reported adjusted Q2 net income of $0.40 per share on $561 million in sales compared with Capital IQ consensus expecting a $0.39 per share non-GAAP profit on $560.95 million in sales.

In other sector news:

+ Yelp ( YELP ) surged 30% to a three-year high of $49.50 a share after the consumer business review website reported a 33% increase in Q2 net income over last year to $0.12 per share, crushing the Capital IQ consensus expecting a $0.01 per share profit. Revenue rose to $234.86 million from $209.95 million last year, also exceeding the $232.28 million Street view. Yelp also raised both ends of its Q3 revenue outlook and increased the bottom end of its FY18 revenue forecast, continuing to match analyst projections.

+ Twenty-First Century Fox (FOX,FOXA) was back on positive ground Thursday afternoon, erasing a nearly 1% for the movie and television company despite it reporting adjusted Q4 net income of $0.57 per share on $7.94 billion in revenue, topping analyst estimates by $0.04 per share and $420 million, respectively. Analyst response to the better-than-expected results was mixed, with RBC Capital Markets lowering its investment rating for Fox shares to Sector Perform from Outperform but raising its price target by $4 to $49 a share. Analysts at the Pivotal Research Group also increased their price target by $3 to $45 a share while reiterating their Hold recommendation.

- Rite Aid ( RAD ) was more than 9% lower late Thursday after the pharmacy store chain scrapped its proposed $24 billion merger with grocery giant Albertsons. The announcement came one day before Rite Aid shareholders were slated to vote on the prospective tie-up, with the company now saying board members plan on meeting with investors on how to "ensure alignment" with company management.

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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