Consumer Sector Update for 07/15/2020: LRN,MGM,PVH,CMG

Consumer stocks were higher heading into Wednesday's close, with the SPDR Consumer Staples Select Sector ETF still climbing 0.3% this afternoon while the SPDR Consumer Discretionary Select Sector ETF was rising 1.5%.

In company news, K12 Inc (LRN) was ahead almost 10% after the online educator Wednesday said it plans to hire more than 1,300 educators for the upcoming 2020-21 academic year in response to rising demand for at-home schooling amid the ongoing COVID-19 pandemic. K12 said the uncertainty surrounding primary and secondary education during the pandemic has many parents exploring virtual schooling opportunities, also noting that about one-third of teachers are more than 50 years old, placing them at increased risk of contracting the coronavirus.

MGM Resorts International (MGM) rose just under 13% after media reports that it will reopen its Borgata Hotel Casino & Spa in Atlantic City, N.J., on July 26. The company originally was scheduled to reopen the casino on July 6 but postponed those plans after New Jersey Gov. Phil Murphy reversed an earlier order allowing indoor dining.

PVH (PVH) climbed 9.4% after the apparel company disclosed plans to close its 162 Heritage Brands outlet stores and cut about 450 positions, or about 12% of its workforce. The moves are expected to reduce the company's costs by around $80 million per year.

Chipotle Mexican Grill (CMG) was nearly 4% higher after the restaurant chain announced plans to hire 10,000 new employees over the next few months to support rising demand for its Chipotlane drive-through digital order pick-up lane. The company will be opening its 100th Chipotlane before the end of July near Columbus, Ohio.

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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