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

Consumer stocks were narrowly split between winners and losers Thursday, with the SPDR Consumer Staples Select Sector ETF climbing 0.2% in afternoon trading while the SPDR Consumer Discretionary Select Sector ETF was falling 0.3%.

Among decliners, Norwegian Cruise Line Holdings (NCLH) tumbled almost 13% 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.

Carnival (CCL,CUK) shares also dropped nearly 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.

To the upside, Farmmi (FAMI) climbed more than 6% 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 and other clients.

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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