Consumer Sector Update for 12/29/2016: LUV,SHLD,FOXA
Top Consumer Stocks
Consumer stocks still were mixed in late-afternoon trade, with shares of consumer staple companies in the S&P 500 rising almost 0.5% while shares of consumer discretionary firms in the S&P 500 have cut their earlier declines to around 0.1%.
In company news, Southwest Airlines Company ( LUV ) was little changed this afternoon after the discount carrier earlier Thursday said facilities maintenance technicians narrowly rejected a tentative contract agreement reached in October following more than three years of talks.
The proposal lost by a 19-to-15 margin with three members not voting, the airline said, citing Aircraft Mechanics Fraternal Association data. Negotiators announced an agreement on the new contract in October.
Southwest declined to say when it expects the talks to resume. "The company will take a step back to assess the results of the vote and determine how we might structure a contract that respects and serves the interests of both the company and our employees," according to John Zuzu, the senior director of corporate facilities at Southwest, in prepared remarks.
LUV shares were up a penny at $50.18 each shortly before today's closing bell, giving back a moderate gain earlier this afternoon that lifted the stock as high as $50.62 a share today.
In other sector news,
(+) SHLD, Receives secured standby letter of credit facility, allowing the retailer to request up to $200 mln in new borrowings. Credit limit can be increased to $300 mln with consent of the lenders.
(-) FOXA, Wedbush increases price target by $1 to $32 a share, also reiterating its Outperform investment rating for the stock.
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