Sector Update: Late Slump Drags Consumer Stocks Underwater

Wednesday, September 16, 2020 3:45 PM | MT Newswires

Consumer stocks turned narrowly lower in late Wednesday trading, with the SPDR Consumer Staples Select Sector ETF slipping 0.2% while the SPDR Consumer Discretionary Select Sector ETF also was dropping 0.2%.

In company news, US Foods Holding (USFD) was 1.6% higher shortly before Wednesday's close after saying it expects adjusted Q3 earnings before interest, taxes, depreciation and amortization will more than double over Q2 levels amid continued improvement in current case volume. The company also said its strong liquidity position would help future growth.

Southwest Airlines (LUV) climbed 4%. The carrier Wednesday said it will continue to limit passenger capacity by not booking middle seats through the end of November. It also said August operating revenue dropped 70% from a year ago, compared to the previous projection for a decline of 70% to 75%

L Brands (LB) rose 2.2% after the apparel retailer Wednesday said it's planning a $750 million private placement of senior notes due 2030. Net proceeds will be used to fund tender offers for up to $750 million of the company's outstanding notes and repay other debt.

ADT (ADT) dropped more than 13% after the home security company Wednesday priced a secondary offering of 43.5 million common shares previously held by Apollo Global Management (APO) and selected current and former ADT executives at $10 apiece, or 7.4% under Tuesday's closing price.

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