Sector Update: Consumer
Consumer stocks were finishing near their session highs this afternoon with shares of consumer staples companies in the S&P 500 advancing almost 1.4%. Shares of consumer discretionary firms in the S&P 500 were climbing around 1.3%.
In company news, Sears Holdings Corp ( SHLD ) advanced Monday after the struggling retailer said it would raise up to $625 million through a rights offering of 8% senior notes due 2019 along with warrants to buy shares.
Affiliates of CEO Eddie Lampert and his hedge fund, ESL Investments, will participate in the offering, the third time in two months Lampert has agreed to pump more money into the company.
Overall, SHLD has announced plans to raise just over $2 billion this year, double the target it set in March, with Lampert providing roughly 40% of the new funding. The executive and hedge fund manager controls 48.5% of SHLD.
Separately, SHLD today said it will lease space totaling 520,000 square feet in seven of its stores in the northeastern U.S. to British clothing retailer Primark. Financial terms of the deal were not disclosed.
SHLD shares were up more than 22% at $34.81 apiece late in Monday's session, earlier climbing to an intra-day high of $37.13 a share. The stock has traded within a 52-week range of $23.84 to $66.77 a share, dropping nearly 49% over the past year prior to today's gain.
In other sector news,
(+) ESI, Bank of America Merrill Lynch raises price target by $1 to $8 a share, also reiterating its Underperform rating for the stock after concluding the for-profit educator has sufficient cash on hand to address any potential liquidity issues.
(-) SHOO, (-8.5%) Cuts full-year earnings forecast to $1.81 to $1.86 a share, trailing Capital IQ consensus by at least $0.16 per share. Also lowers outlook for sales growth to 1% to 2% from prior guidance looking for 2% to 4% growth.
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