Top Consumer Stocks
Consumer stocks were broadly higher Monday afternoon, with shares of consumer staples companies in the S&P 500 sinking nearly 0.5% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing more than 1.4%.
Among consumer stocks moving on news:
+ Starbucks ( SBUX ) climbed nearly 2% on Monday following reports outgoing executive board chairman Howard Schultz has tried to calm investor worries by saying he believes a recent slowdown at the company's Chinese locations was likely temporary and hinted at a potential partnership between the coffeehouse chain and Jack Ma, the billionaire founder of Chinese e-commerce giant Alibaba Group ( BABA ), to help boost online coffee sales inside the sprawling Asian country. Last month, Starbucks said same-store sales in China would would be flat to slightly negative during the April-to-June reporting period compared to 7% growth during the year-ago period. Starbucks shares likely were picking up support Monday from an announcement it plans to phase out plastic straws from all of its stores by 2020, replacing them with biodegradable straws as well as a new style of lids for drinks served in cold cups.
In other sector news:
+ Groupon ( GRPN ) still was almost 7% higher on Monday, giving back roughly half of its initial advance that followed a Recode report the marketing and ecommerce coupon company is seeking a potential buyer. Groupon executives and investment bankers representing the company have recently taken a more aggressive approach sounding out prospective buyers, Recode said, citing two sources familiar with the matter, later adding it was unclear whether the company can complete a deal. A Groupon spokesperson declined to comment when contacted by Recode.
+ Fresh Del Monte Produce ( FDP ) was holding on to a small gain Monday afternoon, recovering from a prior 1% decline that followed federal authorities saying more than 200 people in four states have been sickened by an intestinal parasite after eating broccoli and carrots and other vegetables from the company's vegetable trays. Through July 5, 212 infections were reported in Iowa, Michigan, Minnesota and Wisconsin by the Centers for Disease Control, with most of vegetable trays sold at either Kwik Trip or Kwik Star stores. Cyclosporiasis, which is caused by the Cyclospora cayetanensis parasite, has been linked to fresh produce imported from other countries. But the contaminated produce is often difficult to trace because by the time an outbreak is detected, the product usually is long gone.
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