Sector Update: Consumer Stocks Down With Broader Market Retreat; JC Penney Falls Despite Better-Than-Expected Q2 Results

Top Consumer Stocks

WMT -0.82%

MCD +0.02%

DIS +0.69%

CVS -0.58%

KO +1.73%

Consumer stocks were moderately lower Friday afternoon with shares of consumer staples companies in the S&P 500 slipping about 0.2%. Shares of consumer discretionary firms in the S&P 500 were down about 0.4%.

In company news, J.C. Penney Co. Inc. ( JCP ) was lower in mid-day trade Friday, with shares reversing an initial advance that following the department-store retailer last night reporting a smaller adjusted Q2 net loss than analysts were expecting and same-store sales that exceeded Wall Street projections.

Excluding one-time items, the company posted Q2 adjusted net loss of $0.75 per share, beating analyst estimates by $0.20 per share. Revenue rose 5.1% year over year to $2.8 billion, edging out the consensus view by around $20 million.

On a GAAP basis, it lost $172 million, or $0.56 per share, during the quarter, improving on a $586 million loss last year.

The company also said sales at stores open at least one year climbed 6.0% during the over year-ago levels, the third consecutive quarter of positive same-store growth.

JCP shares were down about 3.1% at $9.44 each in early afternoon trade, just off its session low of $9.34 and giving back a small 0.5% gain for shares during the first hour of today's session. The stock has traded in a 52-week range of $4.90 to $14.65 a share, slipping slightly more than 32% over the past 12 months.

In other sector news,

(+) MNST, (+30.2%) Enters long-term strategic partnership with Coca-Cola ( KO ), which will buy 16.7% stake in MNST for $2.15 bln. The deal includes KO contributing its energy portfolio to MNST, which will contribute its non-energy portfolio to KO.

(-) EVRY, (-7.3%) Reports Q2 net loss of $26.9 mln, or $1.31 per share, which may not be comparable to Capital IQ consensus expecting $0.31 loss. Excluding items, adjusted loss was $0.95 per share. Revenue falls 1.0% to $99.8 mln, lagging Street by $400,000.

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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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