Consumer Sector Update for 12/23/2015: NKE,FCAU,BBBY

Top Consumer Stocks

WMT +0.78%

MCD +0.93%

DIS -0.90%

CVS +0.19%

KO +0.81%

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.

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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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