Consumer Sector Update for 07/14/2020: REED,AMZN,DAL,ICON,MLCO

Consumer stocks were broadly higher late on Tuesday, with the SPDR Consumer Staples Select Sector ETF climbing 1.4% this afternoon while the SPDR Consumer Discretionary Select Sector ETF was rising 0.3%.

In company news, Reed's (REED) raced almost 9% higher after the soft-drink company said (AMZN) has begun selling its Flying Cauldron non-alcoholic butterscotch cream soda, meeting customer demand for home direct deliveries of the popular beverage. The company also said it will offer a 10% promotional discount for Flying Cauldron sales through July 31.

Iconix Brand (ICON) was more than 33% higher in late trade, easing from a 96% gain earlier Tuesday, after the apparel company said it is considering strategic alternatives, including a potential sale or merger with another company. Iconix also hired Ducera Partners to assist with evaluating potential offers as a financial advisor.

Among decliners, Delta Air Lines (DAL) was down 2.5% after the air carrier Tuesday reported a non-GAAP Q2 net loss of $4.43 per share, reversing a $2.35 per share adjusted profit during the same quarter last year and trailing the Capital IQ consensus expecting a $4.16 per share non-GAAP loss. Revenue plunged over 88% compared with year-ago levels, dropping to $1.47 billion but topping the $1.40 billion Street view.

Melco Resorts & Entertainment (MLCO) fell over 6% after the casino company said its Melco Resorts Finance subsidiary plans to issue senior notes to raise funds to repay outstanding debt owed through its revolving credit facility and for other general corporate purposes.

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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