Sector Update: Consumer
Consumer stocks were moderately lower with shares of consumer staples companies in the S&P 500 falling about 0.3%. Shares of consumer discretionary firms in the S&P 500 were down about 0.4%.
In company news, American depository shares of China Mobile Games and Entertainment Group Ltd. ( CMGE ) extended its declines Friday in an abbreviated session that followed the Nasdaq Stock Market lifting its trading halt after the mobile games publisher confirmed reports its company president and several other executives were fired yesterday.
Shares were off nearly 3% shortly before the closing bell at $14.23 each, recovering a slide to $12.60 a share soon after trade resumed at 1:50 p.m. ET. The stock has a 52-week range of $10.05 to $40.31 a share, rising nearly 18% over the past year.
In a statement, CMGE this afternoon said Company President Ying Shuling and eight other employees were removed as part of a broader restructuring intended to make the company more efficient and competitive.
CM GE shares tumbled as much as 25% Thursday, reaching its lowest share price since last October following unconfirmed reports the company fired Ying and others amid allegations of a wider bribery scheme at the company. The Nasdaq later ordered a trading halt in Thursday's after-market while the exchange waited for CMGE to provide it with unspecified information.
In announcing the dismissals today, the company did not detail its reasons for ousting the nine executives although it acknowledged it was aware of market speculations about the reasons for the restructuring, including allegations of employee misconduct." It also said the CMGE board has formed an independent committee to probe those allegations, adding it will report its results at a later date.
In other sector news,
(+) KMX, Q1 net income of $0.76 per share beats by $0.10. Revenue rises 13.3% year over year to $3.75 bln, topping Street view by around $180 mln. Used vehicle unit volume grew 3.4% over year-ago levels.
(-) SWHC, GAAP Q1 earnings outlook lags Street view by at least $0.15 per share; projected revenue misses by at least $30.83 mln. FY15 EPS, revenue forecasts also trail consensus estimates. Weak outlook trumps better than expected Q4 results.
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