Consumer Sector Update for 12/18/2015: NAV,RLOC,NAKD

Top Consumer Stocks

WMT +0.31%

MCD -1.06%

DIS -4.04%

CVS +0.04%

KO -1.69%

Consumer stocks were declining this afternoon, with shares of consumer staples companies in the S&P 500 falling nearly 1.3% while shares of consumer discretionary firms in the S&P 500 were sliding over 0.9% lower.

In company news, Navistar International Corp ( NAV ) gained Friday after the truck manufacturer late yesterday said it was near a settlement with U.S. securities regulators in a probe into the company's pollution-control technology and the 2012 resignation of its chief executive at the time.

Navistar would not have to admit or deny wrong-doing under the tentative deal with the U.S. Securities and Exchange Commission and has set aside an undisclosed amount for a likely civil penalty, according to a regulatory filing last night. Agency staff have recommended accepting the company's offer, it said.

The dispute follows Navistar in mid-2012 abandoning its efforts to develop diesel engines that would meet with tougher U.S. Environmental Protection Agency rules after maintaining for years that they would. Then-CEO Dan Ustian quit shortly later.

Separately, the company last night said its fiscal Q4 net loss had narrowed to $50 million, or $0.61 per share, from a $72 million and $0.88 per share loss during the same quarter last year. Revenue declined 17.3% from year-ago levels to $2.49 billion during the three months ended Oct. 31, trailing the analyst consensus expecting $2.55 billion.

The stock also may getting a boost from an upgrade today to Neutral from Underweight at JPMorgan.

NAV shares were up nearly 6% at $8.45 each, earlier streaking to session high of $11.54 a share.

In other sector news,

(+) RLOC, (+53.6%) Secures $10 mln in new funding from VantagePoint Capital Partners, its largest shareholder, while Hercules Technology Growth Capital trims restricted cash required for term loan by $2.5 mln to $15 mln. Reiterates expected Q4 revenue of $88 mln to $92 mln compared with two-analyst consensus of $89.09 mln.

(-) NAKD, (-15.0%) Prices public offering of 1.9 mln shares at $4.00 each, generating around $6.9 mln in net proceeds. Uplists to Nasdaq Global Select market.

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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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