Top Consumer Stocks
Consumer stocks continue to post strong gains on Monday, with shares of consumer staples companies in the S&P 500 racing over 1.1% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.8%.
Among consumer stocks moving on news:
+ Shares of CVS Health Corp ( CVS ), Walgreens Boots Alliance ( WBA ) and Rite Aid Corp ( RAD ) were surging Monday after reports online retail giant Amazon.com ( AMZN ) has scrapped its plans to join the pharmacy business. The decision follows Amazon's difficulty convincing large hospitals to change their longstanding purchasing process with distributors, according to a CNBC television report. Many hospitals also own a stake in group purchasing organizations which negotiate drug prices on their behalf.
In other sector news:
+ Eldorado Resorts Inc. ( ERI ) Monday jumped out to its best share price since May 2000, rising almost 21% to $43.15 a share, after saying it is expecting a series of announced deals will immediately add to its free cash flow and per-share earnings. In one acquisition, Eldorado said it was buying the Grand Victoria Casino in Elgin, Ill., from MGM Resorts (MGM) and its venture partner for $327.5 million in cash. It also is acquiring Tropicana Entertainment from majority owner Icahn Enterprises (IEP) for $1.85 billion in cash and will then selling the Tropicana real estate to Gaming and Leisure Properties (GLPI) for $1.21 billion and also signing a master lease agreement with Gaming and Leisure to operate the gaming and hotel operations at the Tropicana. Both acquistions are expected to close before the end of the year.
- Domino's Pizza (DPZ) rose almost 2% on Monday, climbing to within 1% of its 52-week high of $236.93, after launching 150,000 delivery "hotspots" nationwide to widen access to its food products. Domino's Pizza sold $12.2 billion in products globally during 2017, split between $5.9 billion in the United States and over $6.3 billion internationally and with more than half of those total retail sales coming through digital channels.
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