Consumer Sector Update for 09/04/2018: TA,RRD,AEO,NKE

Top Consumer Stocks

WMT -0.31%

MCD -0.36%

DIS -1.13%

CVS -1.92%

KO +0.21%

Consumer stocks were ending mixed today, with shares of consumer staples companies in the S&P 500 slipping nearly 0.4% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing over 0.2%.

Among consumer stocks moving on news:

(+) TravelCenters of America ( TA ) soared to a 16-month high on Tuesday, rising over 40% to reach $6.10 a share for the first time since May 2017 after the truck stop chain signed a deal to sell its 225 Minit Mart convenience stores to retailer EG Group for about $330.8 million. The deal should close during the final three months of 2018, the company said, adding it expects to book a $101.5 million impairment charge against its Q3 financial results as result of the sale. Net proceeds from the transaction will be used to reduce debt and investing in growth initiatives at the remaining business.

In other sector news:

(+) R.R. Donnelley & Sons ( RRD ) jumped more than 10% higher at one point on Tuesday after analysts at Buckingham Research raised their investment recommendation for the multichannel marketing company to Buy from Neutral.

(+) American Eagle Outfitters ( AEO ) was back on positive ground Tuesday, rising more than 1% and reversing a slightly more than 1.5% decline soon after the opening bell that followed analysts at RBC Capital Markets raised their price target for the apparel retailer by $3 to $28 a share. The new price target suggests a 19X multiple of RBC's estimate for FY18 earnings of $1.48 a share, which includes projected Q3 net income of $0.48 per share. The Street, on average, is expecting American Eagle to earn $1.57 and $0.48 per share during Q3 and FY18, respectively.

(-) Nike ( NKE ) fell as much as 4% on Tuesday after the athletic wear company Monday selected former NFL quarterback Colin Kaepernick as the face of its "Just Do It" 30th anniversary advertising campaign. The new ads feature a black-and-white head shot of Kaepernick together with the slogan, "Believe in something. Even if it means sacrificing everything." Kaepernick has been out of work since the end of the 2016-17 season after the San Francisco 49ers declined to re-sign him after he drew both praise and criticism for kneeling during the national anthem to protest police violence against African-Americans.

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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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