Sector Update: Consumer Stocks Gain, Buoyed by Nike

Last Updated: Friday, June 25, 2021 3:51 PM | MT Newswires

Consumer stocks were on course to finish higher, with the SPDR Consumer Staples Select Sector ETF climbing 0.6% late in regular-hours Friday trading while the SPDR Consumer Discretionary Select Sector ETF was rising 0.7%.

In company news, United Natural Foods (UNFI) gained 2.9% after BMO Capital boosted its price target for the food distribution company's shares by $3 to $36 apiece and kept its market perform rating for the stock.

Darden Restaurants (DRI) was 3.9% higher after Barclays increased its price target for the parent company of the Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen and five other restaurant chains.

CarMax (KMX) rose 7% after the used vehicle seller reported Q1 net income of $2.63 per share, improving on a $0.03 per share profit during the year-ago period, while net sales grew during the three months ended May 31 to $7.7 billion from $3.23 billion. Wall Street had been looking for Q1 earnings of $1.64 per share on $6.18 billion in total sales.

Nike (NKE) was sprinting to a more than 15% gain, leading both the S&P 500 and the Dow Jones Industrials indices, after reporting a fiscal Q4 profit of $0.93 per share and a 96% year-over-year sales increase to $12.34 billion, reversing a year-ago net loss and beating the Capital IQ consensus expecting net income of $0.51 per share on $11.10 billion in sales. In light of the above-consensus results, selected retailers logged gains, including a 2.5% rise for Foot Locker (FL) and a 3.4% advance by Dick's Sporting Goods (DKS), along with increases for apparel sellers like Deckers (DECK), Under Armour (UA,UAA) and Skechers (SKX).

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