Sector Update: Consumer Stocks Losing More Ground in Late Trade

Thursday, June 11, 2020 3:44 PM | MT Newswires

Consumer stocks were ending broadly lower, with the SPDR Consumer Staples Select Sector ETF slipping 3.8% this afternoon while the SPDR Consumer Discretionary Select Sector ETF was falling 5.4%.

In company news, Ideanomics (IDEX) fell more than 15% after Thursday announcing a new partnership with the Beijing Silk Road Rainbow Group to jointly develop more than 2,000 electric-powered buses in China. The companies also said they have selected several manufacturers to assist with the project, which is working to meet demand ahead of a December 2022 deadline by the Chinese government for bus operators to convert their fleets to clean-energy vehicles.

JD.com (JD) dropped 5% after the Chinese e-commerce platform priced a $3.88 million global offering of 133 million class A shares at $29.16 apiece, representing a 52% discount to Wednesday's closing price. Net proceeds will be used to support supply chain-based technology initiatives, the company said.

To the upside, ServiceMaster Global Holdings (SERV) rose almost 11% after the home-services company earlier Thursday said it expects between $510 million to $525 million in Q2 revenue, topping the Capital IQ consensus for $476 million.

GrubHub (GRUB) rose over 5% after the company said it agreed to a $7.3 billion buyout by UK delivery services rival Just Eat. Under terms of the proposed all-stock transaction, investors will receive 0.671 of a Just Eat American depository share for each GrubHub share, valuing the target company at $75.15 per share. Existing Grubhub shareholders would own about 30% of the combined companies.

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