Consumer Sector Update for 07/16/2020: DKNG,NCLH,CCL,CUK,FAMI

Consumer stocks remain narrowly split between winners and losers Thursday, with the SPDR Consumer Staples Select Sector ETF climbing 0.2% this afternoon while the SPDR Consumer Discretionary Select Sector ETF was falling 0.1%.

To the upside, DraftKings (DKNG) was 9.6% higher shortly before Thursday's closing bell and the digital sports entertainment and gaming company announcing a new partnership with the Premier Lacrosse League, becoming the exclusive official sports betting partner of the professional league. The company was also named the sole regulated gaming sponsor for the PLL 2020 Summer Tournament. Financial details were not disclosed.

Farmmi (FAMI) also climbed more than 5% on Thursday after the Chinese agricultural company said its Zhejiang Forest Food unit received a new customer order for dried whole mushrooms and dried mushroom slices from an unnamed "investment trading company" for export to the US and distribution to the H-Mart supermarket chain, the Stanford hotels among other clients.

Among decliners, Carnival (CCL,CUK) shares also dropped more than 9%. Carnival unit Holland America late Wednesday said it will sell four of its ships to two unnamed buyers and cancel cruises due to the COVID-19 crisis. Separately, Carnival priced a $775 million private placement 10.5% senior secured notes maturing in 2026 and a concurrent EUR425 million offering of 10.125% senior secured notes also due 2026. Net proceeds will fund general corporate purposes, it said.

Norwegian Cruise Line Holdings (NCLH) tumbled 15% after Thursday launching a $250 million public offering of its common shares. The vacation cruise company said net proceeds will be used for working capital.

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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