Top Consumer Stocks
Consumer stocks were paring their prior gains, with shares of consumer staples companies in the S&P 500 still hanging on to a 0.6% increase while shares of consumer discretionary firms in the S&P 500 were adding about 0.3% in recent trade.
In company news, shares of athletic shoes and apparel company Nike ( NKE ) was falling Wednesday afternoon, reversing a record climb earlier in the session that followed it reported fiscal Q2 sales narrowly missing analyst projections, upstaging earnings that jumped 20% over year-ago levels and beating Wall Street projections for the 14th quarter in a row.
Net income for the three months ended Nov. 30 rose to $785 million, or $0.90 per share, up from $655 million and $0.76 per share during the same quarter last year and topping the Capital IQ consensus by $0.04 per share. Revenue grew 4% to $7.69 billion but still trailed the Street view expecting around $7.8 billion. Excluding adverse currency translations, revenue rose 12% year over year, it said.
Also, Nike last month announced a 2-for-1 split of both its class A and class B common shares to take effect after today's closing bell.
After the mixed results last night, analysts at Telsey Advisory Group today raised their price target for Nike stock by $2 to $144 a share, reiterating their Outperform rating.
NKE shares recently were down up nearly 3% at $128.34 apiece, giving back an opening surge that lifted the stock to a new all-time high of $136.39 a share this morning. The stock has been the best performing stock in the Dow Jones Industrial Average this year, rising 38% through yesterday's close.
In other sector news,
(+) FCAU, (+3.6%) CFO Richard Palmer adds chief operating officer responsibilities, effective Jan. 1. He replaces Riccardo Tarantini, who is retiring after more than 35 years at the company.
(-) BBBY, (-4.1%) Lowers Q3 EPS guidance to new range of $1.07 to $1.10 from prior outlook of $1.14 to $1.21 per share and lagging Street view by at least $0.07. Telsey Advisory Group cuts price target by $13 to $52 a share; keeps Market Perform rating.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.