Markets

Sector Update: Consumer

Consumer stocks have turned largely positive shortly before the closing bell with shares of consumer staples companies in the S&P 500 climbing about 0.1%. Shares of consumer discretionary firms in the S&P 500 currently are ahead about 0.3%.

In company news, Safeway Inc. ( SWY ) is narrowly higher in late trade and the grocery chain today completing the sale of its Canada Safeway ULC assets to Sobeys Inc., a wholly-owned subsidiary of Empire Company Ltd (EMP-A.TO).

SWY pocketed about C$5.8 billion in cash from the transaction along with between $400 million to $450 million in U.S. tax benefits. The new funds will be used to repay about $2 billion of existing debt, with the majority of the remaining money tabbed for stock buybacks. A portion of the proceeds also may be used to invest in growth opportunities.

In other sector news,

(+) TA, Reports Q3 net income of $0.53 per share, or topping the Capital IQ consensus by $0.09. Revenue climbs 1.4% over the same quarter last year to $2.06 bln, trailing estimates by around $50 mln.

(-) RYAAY, Reports first-half FY14 profit of EUR 602 mln, missing forecasts by EUR 4.7 mln. Revenue climbs 5% year over year to EUR 3.26 bln, also trailing consensus by around EUR 30 mln. Reduced FY14 profit guidance by EUR 60 mln to to EUR 510 mln.

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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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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