Markets

Consumer Sector Update for 09/25/2015: RAI, CTAS, PIR

Top Consumer Stocks

WMT +0.85%

MCD +1.38%

DIS +0.84%

CVS +0.39%

KO +2.29%

Consumer stocks were starting to widen their gains Friday afternoon, with shares of consumer staples companies in the S&P 500 advancing almost 1.4% and shares of consumer discretionary firms in the S&P 500 enjoying a 1.0% increase.

In company news, Reynolds American ( RAI ) shares advanced Friday following reports the cigarette company was in talks with Japan Tobacco, which wants to acquire around $5 billion of Reynold's assets

Among the assets that may be on the block is the Natural American Spirit tobacco brand, Bloomberg said, citing people familiar with the talks. While the discussions are advanced, the size of the deal and the makeup of the assets could still change or even fall apart, the sources said.

RAI shares were up more than 2% at $43.14, easing from an earlier run to $43.43 a share. Entering Friday's trading, the stock already had climbed almost 44% over the past 12 months.

In other sector news,

(+) CTAS, (+3.7%) Q1 EPS of $0.93 beats by $0.03 per share. Revenue rises 8% from last year to $1.2 bln, edging out the $1.17 bln consensus. Raises FY15 earnings, revenue forecasts. Lowers FY16 earnings forecast below Street view.

(-) PIR, (-16.4%) Q2 EPS of $0.04 misses by $0.03 per share. Revenue rises 2.7% to $429.9 mln but trails $435 mln consensus. Expects Q3 EPS of $0.10 to $0.14 vs $0.23 consensus. Lowers FY16 earnings guidance below Street view.

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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